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K Company maintains a checking account at National Bank. Ks general ledger account had a balance of $12,673 at the end of May. The May

K Company maintains a checking account at National Bank. Ks general ledger account had a balance of $12,673 at the end of May. The May bank balance was $12,373.

The May bank statement included the following information:

The bank returned one of Ks customers checks marked NSF $ 50

Monthly loan payment deducted directly by the

bank from Ks account (includes $107 of interest) 1,107

Bank credit card fees 10

Draft for monthly electricity 335

Additional reconciling information:

A deposit that K mailed May 30 does not appear on the bank statement 2,115

Checks written by the company but not yet processed by the bank totaled 2,807

K recorded a $1,400 deposit from a credit customer as a $800

debit to cash and credit to accounts receivable.

A check correctly recorded by K as a $1,210 disbursement was incorrectly

processed by the bank as a $1,300 disbursement.

  • Prepare a bank reconciliation for K Company
  • Prepare the necessary journal entries that result from the bank reconciliation.

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