Prepare Bank Reconciliation and Journal Entries

The Brown Company bank statement for September 30, 2010 showed a balance of $1,681.50. The company's cash account showed a $1,305.20 debit balance. The following information was also available: A customer's cheque (from Jones Company) for $90 marked NSF was returned to Brown Company by the bank. The bank charged the company's account a $10 processing fee, which Brown will add to the amount owing from Jones. The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the bank statement.

A $15.10 debit memorandum for cheques printed by the bank was included with the cancelled cheques. Outstanding cheques amounted to $1,141.40. A customer's note for $920 was collected by the bank. A collection fee of $20 was deducted by the bank. Included with the cancelled cheques was a cheque for $300, drawn on another company, The Browne Bros.