This information relates to the Cash account in the ledger of Mawmeg 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 $4,800 and outstanding checks totaled $2,383.
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 $1,800 note plus interest $30 $1,830 Interest earned on checking account 45 Debits NSF check: J. Hower Safety deposit box rent $410 30