Bug Busters Company performs insect extermination services. On October 31, 2014, the companys cash account per its

Bug Busters Company performs insect extermination services. On October 31, 2014, the company’s cash account per its general ledger showed a balance of $4,632. The bank statement from Central Bank on that date showed the following balance.

A comparison of the details on the bank statement with the details in the cash account revealed the following facts.
1. The statement included a debit memo of $50 for the printing of additional company checks.
2. Cash sales of $342 on October 6 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $372. The bank credited Bug Busters Company for the correct amount.
3. Outstanding checks at October 31 totaled $1,250, and deposits in transit were $2,390.
4. On October 13, the company issued check No. 4263 for $196 to T. Grey, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Bug Busters Company for $169.
5. A $1,000 note receivable was collected by the bank for Bug Busters Company on October 31 plus $50 interest. The bank charged a collection fee of $15. No interest has been accrued on the note.
6. Included with the canceled checks was a check issued by Fig Leaf Company for $120 that was incorrectly charged to Bug Busters Company by the bank.
7. On October 31, the bank statement showed an NSF charge of $230 for a check issued by Jon Simpson, a customer, to Bug Busters Company on account.

Instructions
(a) Prepare the bank reconciliation at October 31, 2014.
(b) Prepare the necessary adjusting entries for Bug Busters Company at October 31,2014.

Transcribed Image Text:

CENTRAL BANK Checks and Debits Deposits and Credits Daily Balance 10-31 4,070