Part I (10 marks)

Rainbow Company's December 31, 2019 bank statement showed a balance of $53,410. Rainbow's December 31, 2019 cash balance was $45,800. Shown below is the information needed to prepare a bank reconciliation for Rainbow Company.

1. Deposits in transit amounted to $5,500.
2. Outstanding checks at the end of December totaled $12,200.
3. The bank service fee for December was $100.
4. A customer payment for a $1,500 receivable was collected by the bank but not yet recorded by Rainbow Company.
5. A check issued for the purchase of office supplies was wrongly recorded for $890 but appeared on the bank statement at $980.
6. A check of $400 was returned with bank statement because of insufficient fund in the customer's account.

Required:

Prepare a bank reconciliation for Rainbow Company at December 31, 2019.