On June 30, the balance in Zachariah Builders checkbook and Cash account was $12,837.18. The balance on the bank statement on the same date was $15,084.06.

Notes

• The following checks were issued but have not yet been paid by the bank: Check 335 for $297.90; check 337 for $195; and check 339 for $850.80.
• A credit memorandum shows that the bank has collected a $3,000 note receivable and interest of $60 for the firm. These amounts have not yet been entered in the firms records.
• The firms records indicate that a deposit of $1,888.14 made on June 30 does not appear on the bank statement.
• A service charge of $28.68 and a debit memorandum of $240 covering an NSF check have not yet been entered in the firms records. (The check was issued by Alan Hutchins, a credit customer.)

Instructions:

• a.Prepare a bank reconciliation statement for the firm as of June 30.
• b.Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries July 31.
• c.After all the journal entries have been recorded and posted, what is the balance in the cash account? Show T account proof.