BANK RECONCILIATION

The bank statement for Leisure Sports indicates a balance of $7,650.20 on July 31. The cash in bank account had a balance of $4,323.40 on this date, after the cash receipts journal and the check register for July had been posted. Prepare a bank reconciliation on the basis of the following reconciling items:

a- Checks outstanding, $2,992.50

b- Deposits in transit not recorded by bank, $610.70

c- Bank debit memorandum for service charges, $10.80

d- Bank credit memorandum for note collected by bank, $1,050, including $50 interest

e- Bank debit memorandum for $112.20 NSF (not sufficient funds) check from Sue Rooney, a customer

f- Cash sales of $553 on May 5 had been erroneously recorded in the cash receipts journal as $535