Financial Accounting

You have received the bank statement for your company's account and need to reconcile it with your cash ledger account. Your records show an ending balance for the month of $12,722.40 while the bank's records show an ending balance of $12,367.16.

The bank charged $8 in service fees and paid $26.05 in interest.

All but three checks written during the month were processed by the bank without incident during the month. The three exception were:

1- Check #841 was correctly processed by the bank as $981.27 but was mistakenly recorded by you as $781.27.

2- Check #853 for $64.57 had not been yet processed by the bank.

3- Check #855 for $683.46 had not been yet processed by the bank.

All but two of the deposits made during the month were processed by the bank without incident. The two exceptions were:

1- A customer check for $307.95, which had been deposited during the month, was returned NSF.

2- A deposit totaling $613.37 had not yet been processed by the bank.

Using the information provided above, prepare a bank reconciliation.