Greenwood Company of Omaha, Nebraska, provides liquid fertilizer and herbicides to regional farmers. On July 31, 2010, the company€™s cash account per its general ledger showed a balance of $5,909.70.
The bank statement from Tri-County 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 bank service charge for July was $32.
2. The bank collected a note receivable of $900 for Greenwood Company on July 15, plus $48 of interest. The bank made a $10 charge for the collection. Greenwood has not accrued any interest on the note.
3. The July 31 receipts of $1,339 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to N. Teig, a creditor, for $492 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $429.
5. Checks outstanding on July 31 totaled $2,480.10.
6. On July 31, the bank statement showed an NSF charge of $818 for a check received by the company from N. O. Doe, a customer, on account.

Instructions
(a) Prepare the bank reconciliation as of July 31, 2010.
(b) Prepare the necessary adjusting entries at July 31,2010.

Transcribed Image Text:

TRI-COUNTY BANK Daily Balance 7-31 7,075.80 Checks and Debits Deposits and Credits