3. The bank statement for Indiana Inc. shows an unadjusted balance of $2,330 at June 30, 2018, while the unadjusted cash balance per books was $599. The following information pertains to the bank transactions for the company. (20 marks)

1. Deposits of $160, representing cash receipts of June 30, did not appear on the bank statement.

2. Outstanding cheques totalled $240.

3. Bank service charges for June were $9.

4. Electronic collections on account totalled $1,740, and have not yet been recorded by the company.

5. An NSF cheque for $80 from a customer was returned with the statement.

Instructions

(a) Prepare a bank reconciliation at June 30. (10 marks)

(b) Prepare any journal entries necessary as a result of the bank reconciliation. (10 marks)