Part $5$: Bank Reconciliations

On September $31,2024,$ Simpson Corp. had a cash balance per books of $$37,318.$

The statement from Springfield Bank on that date showed a balance of $$31,337.$ A

comparison of the bank statement with the cash account revealed the following

facts:

The bank service charge for July was $$120.$

The bank collected an Electronic Funds Transfer $($EFT$)$ from a customer,

Flanders Co$.,$ for $$5,150.$

Company check No$.7273$ issued to Milhouse Inc., a creditor, for $$1,030$

cleared the bank in July but was incorrectly recorded by the company for

$$937.$

Checks outstanding on July $31$ totaled $$3,872.$

Deposits in transit on July $31$ totaled $$14,000.$

On July $31,$ the bank statement showed an NSF charge of $$790$ for a check

received by the company from a customer, Maggie LLP$,$ which had been a

payment on account.

a$.$ Prepare the bank reconciliation below:

Adjusted Balance:

Adjusted Balance:

b$.$ Prepare the necessary journal entries that Roads Company needs to record.