On August 31, Baginski and Company receives its bank statement ( shown below). The company deposits its receipts in the bank and makes all payments by check. The debit memo for $ 95 is for an NSF check written by L. Pitts. Check no. 925 for $ 47, payable to Jardin Company (a creditor), was recorded in the checkbook and journal as $ 74. The ledger balance of cash as of August 31 is $ 1,563. Outstanding checks as of August 31 are no. 928, $ 150 and no. 929, $ 292. The accountant notes that the deposit of August 31 for $ 599 did not appear on the bank statement.

Required 1. Prepare a bank reconciliation as of August 31 assuming that the debit memos have not been recorded. 2. Record the necessary journal entries. 3. Complete the bank form to determine the adjusted balance ofcash.

PEABODY NATIONAL BANK STATEMENT OF Baginski and Company 416 Seneca Avenue Kansas City, Missouri 64102 ACCOUNT NO. 152-655-217 STATEMENT DATE August 1 to 31, 20- SUMMARY Balance Last Statement Amount of Checks and Dobits Number of Checks Amount of Deposits and Credits Number of Deposits Balance This Statement $961.00 $2,289.00 $2,651.00 $1.323.00 CHECK DATE CHECK DATE CHECKS/ OTHER DEBITS CHECKS NUMBER POSTED AMOUNT NUMBER POSTEDAMOUNT 172.00 78.00 146.00 206.00 139.00 200.00 917 918 919 8-04 621.00 3700 4700 441.00 94.00 923 8-05 8-07 8-07 8-07 8-17 8-17 8-23 8-28 025 922 OTHER DEBITS DATE POSTED AMOUNT DESCRIPTION DM NSF check DM Service cha 8-31 8-31 95.00 15.00 DATE DATE DEPOSITS OTHER CREDITS DEPOSITS POSTED AMOUNTPOSTED AMOUNT 326.00 412.00 43700 368.00 8-18 419.00 398.00 291.00 8-05 8-28 8-14 PLEASE EXAMINE THIS STATEMENT CAREFULLY. REPORT ANY POSSIBLE ERRORS WITHIN 10 DAYS CODE SYMBOLS CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction