Puskas Companys bank statement for the month of August showed a balance per bank of $8,000. The companys Cash account in the general ledger had a balance of $4,685 at August 31. Other information is as follows:

(1) The total amount of checks still outstanding at August 31 amounted to $5,800.

(2) The bank statement shows a debit memorandum for $50 for service charges.

(3) Check No. 119 payable to Ballondor Company was recorded in the cash payment journal and cleared the bank for $229. However, a review of the accounts payable account shows a $63 credit balance and that the payment to Ballondor Company should have been for $292.

(4) Cash receipts for August 31 recorded on Puskas Companys books were $4,000 but this amount does not appear on the bank statement.

(5) Check No. 83 was correctly written and paid by the bank for $438. However, the cash payment journal reflects an entry for Check No. 83 as a debit to Accounts Payable and a credit to Cash in Bank for $483.

(6) The bank returned an NSF check from a customer for $550.

(7) The bank included a credit memorandum for $2,070 which represents collection of a customers note by the bank for Puskas Company; principal amount of the note was $2,000 and interest was $70. Interest has not been accrued.

Puskas Company uses the following accounts: Cash, Accounts Receivable, Notes Receivable, Interest Receivable, Accounts Payable, Notes Payable, Interest Payable, Sales Revenue, Interest Revenue, Interest Expense, and Miscellaneous Expense. Required: For each item, prepare any adjusting entry necessary for Puskas Company as a result of the bank reconciliation. Provide your answers on the next page. (Note: Write no entry when no entry is required.)

Question 1 (continued)

Item Debit Credit (1) (2) (3) (4) (5) (6) (7)