6-28 (Algo) Preparing Bank Reconciliation and Entries and Reporting Cash LO6-4

The September 30 bank statement for Bennett Company and the September ledger account for cash are summarized here:

BANK STATEMENTChecksDepositsBalanceBalance, September 1$6,650Deposits recorded during September$26,20032,850Checks cleared during September$26,7506,100NSF checksBetty Brown1405,960Bank service charges475,913Balance, September 305,913

Cash (A)Sept. 1 Balance6,650Sept. Checks written29,800Sept. Deposits29,000

No outstanding checks and no deposits in transit were carried over from August; however, there are deposits in transit and checks outstanding at the end of September.

Required:

1.Reconcile the bank account.

2.Prepare thejournal entries that should be made as the result of the bank reconciliation.

3.What should the balance in the Cash account be after the reconciliation entries?

4.What total amount of cash should the company report on the September 30 balance sheet?