Problem 2 (Bank Reconciliation)

High Tech Company of New York has provided you with the following cash account information for the month. The company's cash book had a cash balance of $5,815.30 while the company's bank account at fleet Bank showed the balance of $7,075.80. A comparison of the cash book and the bank statement revealed the following details.

1. Bank service charge for July was $25
2. The bank collected a note receivable of $1,200 for R & J company on July 15, plus $48 of interest. The bank made a $10 charge for the collection.
3. The July receipts of $1,819.60 were not included in the July deposits.
4. Company check No. 2480 issued to G. Subway a creditor for $492 that cleared the bank in july was incorrectly entered in the cash payment journal in July for $429.
5. Checks outstanding in July totaled $2,480.10
6. On July 31, the bank statement showed an NSF check of $550 for a check received by company from B.N Diet a customer on account.

(a) create the bank reconciliation for July 2011

(b) create the necessary adjusting entries at July 31, 2011