Daisy Company received a bank statement for February, as follows:

Date	Checks		Deposits		Balance
Feb.
1					$ 4,524.80
7	$ 2,700.33		$8,642.61
9	3,484.81
14	6.00	SC	460.00	CM
16	274.09
21	4,133.60		3,385.49
23	69.69	NSF
28					$ 6,344.38

SC = Service Charge; NSF - Check Returned; CM = Credit Memo; DM = Debit Memo

The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge (Miscellaneous expense). The companys accounting records contained the following information:

Cash balance on February 28 from the books: $2,610.42

Cash Disbursements		Cash Receipts
Ck No.
155	$2,700.33	Feb. 7	$8,624.61
156	3,484.81	21	3,385.49
157	274.09
158	589.02
159	4,133.60
160	2,742.63

Note: All receipts are verified and correct.

	Required:
1.	Prepare a bank reconciliation on February 28, 2016, for Daisy.
2.	Prepare the journal entries that Daisy should record as a result of the reconciliation.

Chart of Accounts

CHART OF ACCOUNTS

Daisy Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Amount Descriptions

Amount Descriptions

Outstanding ck158

Outstanding ck160

Adjusted cash balance

Bank service charge (Miscellaneous expense)

Error in deposit

Note collected by bank, net

NSF check

General Journal

Prepare the journal entries that Daisy should record on February 28 as a result of the reconciliation. Additional Instruction

PAGE 6

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7

Bank Reconciliation

Prepare a bank reconciliation for Daisy on February 28, 2016. Additional Instructions

Daisy Company

Bank Reconciliation

February 28, 2016

1	Balance from bank statement
2	Deduct:
3
4
5
6
7	Adjusted cash balance
8
9	Balance from company records
10	Add:
11
12
13	Deduct:
14
15
16
17	Adjusted cash balance