The bank statement of Irish Company's checking account with the 2nd National Bank shows:

The following additional data are available 1. Balance per ledger account as of July 31 was \(\$ 128,209\).
2. A credit memo included with the bank statement indicated the collection of a note by the bank for Irish Company. Proceeds were \(\$ 13,500\), of which \(\$ 375\) was interest.
3. An NSF check in the amount of \(\$ 6,210\) was returned by the bank and included in the total of checks deducted on the bank statement.
4. Deposits in transit as of July 31 totaled \(\$ 33,750\)
5. Checks outstanding as of July 31 were \(\$ 55,350\).
6. The bank added the \(\$ 29,025\) deposit of another company to Irish's account in error.
7. The bank deducted one of Irish's checks as \(\$ 20,250\) instead of the correct amount of \(\$ 2,025\).
8. Deposit of July 21 was recorded by the company as \(\$ 4,299.75\) and by the bank at the actual amount of \(\$ 4,542.75\). The receipts for the day were from collections on account.
9. The deposits amount shown on the bank statement includes \(\$ 675\) of interest earned by Irish on its checking account with the bank.

a. Prepare a bank reconciliation as of July 31, 1999, for Irish Company.

b. Prepare any journal entry or entries needed at July 31, 1999.

Transcribed Image Text:

Balance, June 30, 1999 Deposits. Less: Checks deducted Service charges Balance, July 31, 1999 $166,118 245,700 $411,818 $243,001 67 243,068 $168,750