Martinez Spa shows a general ledger balance for the Cash account of $3.937 35 on June 30 and the bank statement as of that date indicates a balance of $4,135.00. When the statement was compared with the cash records, the following facts were determined: 1. 2. 3. 4. 5. There were bank service charges for June of $31.00. A bank memo stated that Bao Dai's note for $901.00 and interest of $38.00 had been collected on June 29, and the bank had charged $7.00 for the collection. Any interest revenue has not been accrued. Deposits in transit June 30 were $2,885.00. Cheques outstanding on June 30 totalled $2.146.05. On June 29, the bank had charged Martinez Spa's account for a customer's NSF cheque amounting to $48820. A customer's cheque received as a payment on account of $84.00 had been entered as $57.00 in the cash receipts journal by Martinez Spa on June 15. Cheque no. 742 in the amount of $473.00 had been entered in the books as $439.00, and cheque no. 747 in the amount of $40.20 had been entered as $571.00. Both cheques were issued as payments on account In May, the bank had charged a $14.50 Wella Spa cheque against the Martinez Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error, 6. 7 8