Shepard Company reconciled its bank balance on November 30 and showed two checks outstanding at that time, No. 404 for \(\$ 628\) and No. 409 for \(\$ 124\). The following information is available for the December 31 reconciliation:

Check No. 415 was correctly drawn for \(\$ 770\) in payment for store equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Store Equipment and a credit to Cash as though it were for \(\$ 707\). The bank paid and deducted the correct amount.
The NSF check was received from a customer, Fred Gantry, in payment of his account. Its return was unrecorded. The credit memorandum resulted from a \(\$ 1,500\) note which the bank had collected for the company. The bank had deducted a \(\$ 15\) collection fee and deposited the balance in the company's account. The collection fee was not recorded.
\section*{Required}
1. Prepare a bank reconciliation for Shepard Company.
2. Prepare in general journal form the entries needed to bring the company's book balance of cash into agreement with the reconciled balance.
Problem 6-6A Recording invoices at gross or net amounts

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From the December 31 bank statement: BALANCE OF PREVIOUS STATEMENT ON 11/30/- 5 DEPOSITS AND OTHER CREDITS TOTALING 8 CHECKS AND OTHER DEBITS TOTALING. SERVICE CHARGE AMOUNT. CURRENT BALANCE AS OF THIS STATEMENT CHECKING ACCOUNT TRANSACTIONS AMOUNT. .. ..TRANSACTION DESCRIPTION. 4,302.00 7,344.00 5,683.00 7.00 5,956.00 DATE 12/2 535.00+ 12/11 2,268.00+ 12/21 1,560.00+ 12/29 1,496.00+ 12/30 576.00- Deposit Deposit Deposit Deposit NSF check 12/30 7.00- Service charge 12/30 1,485.00+ Credit memorandum DATE CHECK NO. .AMOUNT DATE. CHECK NO.. AMOUNT 11/25 404 628.00 12/14 413 125.00 12/ 4 410" 734.00 12/16 414 280.00 12/2 411 540.00 12/28 415 770.00 12/ 7 412 2,030.00 *Indicates a skip in check sequence