Using the information in QS 6-12, prepare any necessary journal entries that Organic Food Co. must record as a result of preparing the bank reconciliation.

Data from QS 6-12

Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at the close of business on August 31. Prepare a bank reconciliation using the following information.

a. August 31 cash receipts of $1,240 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.

b. The bank statement shows a $120 NSF check from a customer;
the company has not yet recorded this NSF check.

c. Outstanding checks as of August 31 total $1,120.

d. In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.

e. The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.