PROBLEM 2 The bank statement for Lair Company shows a balance per bank of $15,907.45 on April 30, 2002. On this date the balance of cash per books is $11,589.45. From the foregoing steps, the following reconciling items are determined.

1. Deposits in transit: April 30 deposit (received by bank on May 1). $2,201.40

2. Outstanding checks: No. 453, $3,000.00; no. 457, $1401.30; no. 460, $1,502.70. $5,904.00

3. Errors: Check no. 443 was correctly written by Laird for $1,226.00 and was correctly paid by the bank. However, it was recorded for $1,262.00 by Laird Company. $36.00

4. Bank memoranda:

1. DebitNSF check from J.R. Baron for $425.60 $425.60
2. DebitPrinting Company checks charge $30.00 $ 30.00
3. CreditCollection of note receivable for $1,000 plus interest $1,035.00

Earned $50, less bank collection for of $15.

REQUIRED: PREPARE A BANK RECONCILIATION FOR LAIR COMPANY (16 pts.)