This information relates to the Cash account in the ledger of Howard Company. 

Balance September 1—$16,400; Cash deposited—$64,000 Balance September 30—$17,600; Checks written—$62,800 

The September bank statement shows a balance of $16,500 at September 30 and the following memoranda.

At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383. 

Instructions 

a. Prepare the bank reconciliation at September 30, 2022. 

b. Prepare the adjusting entries at September 30, assuming the NSF check was from a customer on account.

Transcribed Image Text:

Credits Collection from customer of electronic funds transfer Interest earned on checking account Debits NSF check: H. Kane Safety deposit box rent $1,830 $560 45 60