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On January 31, Henderson Company's Cash account had a balance of $32,670. On that date, the bank statement had a balance of $29,700. Analysis of

On January 31, Henderson Company's Cash account had a balance of $32,670. On that date, the bank statement had a balance of $29,700. Analysis of the bank statement and comparison of the statement with the records indicated the following:

Deposits in transit at the end of January

$10,917

Outstanding checks at the end of January

3,570

Bank service charge

13

Customer's returned check, NSF

1,260

Bank collection of note on our behalf

6,920

Interest income on note

230

In reviewing the records, Henderson Company also discovered the following error: A Long Company check of $1,500 was deducted from Henderson Company's account.

Required:

Prepare the journal entries necessary to update the Cash account so that its balance is equal to the adjusted balance per bank reconciliation. Make sure to enter the day for each separate transaction.

Note: It will be helpful if you prepare a bank reconciliation before you prepare the journal entries.

Date Account Title Debit Credit

(Choose one)Accounts ReceivableAccounts PayableCashInterest ExpenseInterest RevenueLegal ExpenseMiscellaneous ExpenseNotes Receivable

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