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Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $10,500. The company's cash account in the general
Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $10,500. The company's cash account in the general ledger showed a balance of $8,670 on June 30. Other relevant information includes the following:
- Deposits in transit on June 30 total $7,800.
- The bank statement shows a debit memorandum for a check printing charge of $60.
- Check number 160 payable to Simon Company was recorded in the accounting records for $372 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $54 credit balance and the check to them should have been $426.
- Outstanding checks as of June 30 totaled $8,700.
- Check No. 176 was correctly written and paid by the bank for $609. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $735.
- The bank returned a NSF check in the amount of $1,026.
- The bank included a credit memorandum for $1,890 representing a collection of a customer's note. The principle portion was $1,800 and the interest portion was $90. The interest had not been accrued.
Required a. Prepare the June bank reconciliation for Chicago Scooter Company. b. Prepare any necessary adjusting entries.
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