r1-r2

The cash account for Axel Co. on January 31 indicated a balance of $28,585. The January bank statement indicated an ending balance of $34.245. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,775 b. A deposit of $6,970 had been made too late to appear on the bank statement. c. The bank collected $6,150 on a note receivable, of which $150 was interest revenue. d. Bank service charges for January amounted to $75 e. A check for $880 was returned by the bank due to insufficient funds. A check drawn for $170 had been erroneously charged by the bank as $710 A check for $2,000 returned with the statement had been incorrectly recorded by the company as $200. The check was originally issued to pay on account RI: Prepare a bank reconciliation as of January 31. (Use the spreadsheet on the next page.) R2: Jounalize the necessary entries Journal entries: Account Debit Credit Record the odditions to the book section Cash Record the deductions to the book section Cash Page 6 of 10 Bank Section: Cash Balance according to bank statement Add: Deduct: 31,980 Adjusted Bank Balance Book Section: Cash Balance according to company Add: Deduct: ed Book Balance $31,980 Page 7 of 10