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Bank Reconciliation On May 3 1 , the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of $ 6 ,
Bank Reconciliation On May the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of $
On that date, the bank statement indicated a balance of $
A comparison of returned checks and bank'advices revealed the following:
Deposits in transit May totaled $
Outstanding checks May totaled $
The bank added to the account $ of interest income earned by Wallace during May.
The bank collected a $ note receivable for Wallace and charged a $ collection fee. Both items appear on the bank statement.
Bank service charges in addition to the collection fee, not yet recorded were $
Included with the returned checks is a memo indicating that Ryder's check for $ had been returned NSF
Ryder, a customer, had sent the check to pay an account of $ less a discount of
Wallace Company incorrectly recorded the payment of an account payable as $ the check was for $
Required
a Prepare a bank reconciliation for Wallace Company at May
b Prepare the journal entry or entries necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.
Note: Do not round answers enter using two decimal places, when needed.
Bank reconciliation
Journal entries
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