This information relates to the Cash account in the ledger of Reston Company:

Balance September 1- \(\$ 17,150\); Cash deposited- \(\$ 64,000\)

Balance September 30 - \(\$ 17,404\); Checks written- \(\$ 63,746\)

The September bank statement shows a balance of \(\$ 16,422\) at September 30 and the following memoranda:

At September 30 deposits in transit were \(\$ 4,500\) and outstanding checks totaled \(\$ 2,383\).
\section*{Instructions}

(a) Prepare the bank reconciliation at September 30

(b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.

Transcribed Image Text:

Credits Collection of $1,500 note plus interest $30 $1,530 Interest earned on checking account 45 Debits NSF check: J. Hower Safety deposit box rent $410 30