COMPREHENSIVE PROBLEM

Music$-$Is$-$Us$,$ Inc.

Music$-$Is$-$Us$,$ Inc, is a supplier of musical instruments for professional and amateur musicians. The company's accountants make adjusting entries monthly, and they make all closing liabilities.

Other information pertaining to the company's trial balance is shown below:

The most recent bank statement reports a balance of $$46,975.$ Included with the bank statement was a $$2,500$ check from Iggy Smarts, a professional musician, charged back to Music$-$Is$-$Us as NSF$.$ The bank's monthly service charge was $$25.$ Three checks written by Music$-$Is$-$Us to suppliers of merchandise inventory had not yet cleared the bank for payment as of the statement date. These checks included: no$.508,$ $$5,500$; no$.511,$$$7,500$; and no$.521,$$$8,000.$ Deposits of $$16,500$ reached the bank too late for inclusion in the current bank statement. The company prepares a bank reconciliation at the end of each month.