Bank Reconciliation

The following information applies to The Rose Company:

Balance per Bank Statement, 12-31-02: $45,000

Balance per Books, 12-31-02: $38,650

Other information:

Deposits in Transit: $10,000

Outstanding Checks: $15,700

Interest collected by bank on Roses behalf: $ 1,000

Bank Service Charge: $ 50

A check that Baldwin Co. gave to Rose bounced.

The check was written for $300. Rose believes that Baldwin Co. will pay her back promptly.

Prepare a bank reconciliation and the appropriate journal entries.