Question 5: 7% points:

Medina Company received its February bank statement on March 6. The statement showed a balance of $316,500. Included on the statement were memoranda showing collections from Medina customers (A/R), totaling $16,000.

The statement also showed a returned check for a customer who paid the balance on his account, for $2,825. The bank charged a returned check fee of $75 for this NSF check. This $75 charge will be added to the customers balance. There were other service charges for the monthly service charge and ATM fees, totaling $200. These are bank service charge expenses. Medinas accountant looked at her accounting records. At the end of February, the cash balance was $312,300. The statement did not reflect a deposit made late on February 28^th, for $14,900. There were also some outstanding checks, totaling $6,200.

Required:

a. Determine the adjusted balance in the cash account after completing a bank reconciliation.

b. Prepare three journal entries needed due to the reconciliation.

a. The adjusted Cash balance is:

(Show calculations here.)

Books

Bank

B. Journal Entries

	Account	Debit	Credit