Riverbed Spa shows a general ledger balance for the Cash account of $5,227.95 on June 30 and the bank statement as of that date indicates a balance of $4,450.00. When the statement was compared with the cash records, the following facts were determined:

1. There were bank service charges for June of $34.00.

2. A bank memo stated that Bao Dais note for $900 and interest of $46.00 had been collected on June 29, and the bank had charged $6.30 for the collection Any interest revenue has not been accrued.

3. Deposits in transit June 30 were $3,890.00.

4. Cheques outstanding on June 30 totalled $2,176.05.

5. On June 29, the bank had charged Riverbed Spas account for a customers NSF cheque amounting to $453.30.

6. A customers cheque received as a payment on account of $90 had been entered as $60 in the cash receipts journal by Riverbed Spa on June 15.

7. Cheque no. 742 in the amount of $491 had been entered in the books as $419, and cheque no. 747 in the amount of $58.40 had been entered as $584.00. Both cheques were issued as payments on account.

8. In May, the bank had charged a $28.00 Wella Spa cheque against the Riverbed Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error.

part (a) Prepare a bank reconciliation at June 30. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)

(b) Write required journal entries