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The bank statement for Fashion Fly had an ending cash balance of $1,500 on December 31, 2018. On this date the cash balance in their

The bank statement for Fashion Fly had an ending cash balance of $1,500 on December 31, 2018. On this date the cash balance in their general ledger was $2,000. After comparing the bank statement with the company records, the following information was determined.

  • The bank returned an NSF check in the amount of $320 that Fashion Fly deposited on December 20. The NSF service fee was $5.
  • A direct deposit was received from a customer on December 30 in payment of their accounts totaling $3,850. This has not yet been recorded by the company.
  • On December 30 the bank deposited $10 for interest earned.
  • The bank withdrew $15 for bank service charges.
  • Deposits in transit on December 31 totaled $4,020.
  1. Reconcile the ledger and bank statement.

  1. Prepare the required journal entries

Date

Account Title and Explanation

Debit

Credit

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