Question
This information relates to the Cash account in the ledger of Sandhill Company. Balance September 1$19,320; Cash deposited$64,000 Balance September 30$20,520; Checks written$62,800 The September
This information relates to the Cash account in the ledger of Sandhill Company. Balance September 1$19,320; Cash deposited$64,000 Balance September 30$20,520; Checks written$62,800 The September bank statement shows a balance of $19,420 at September 30 and the following memoranda.
Credits | Debits | |||||
---|---|---|---|---|---|---|
Collection of electronic funds transfer | $1,990 | NSF check: H. Kane | $720 | |||
Interest earned on checking account | 55 | Safety deposit box rent | 70 |
At September 30, deposits in transit were $4,908 and outstanding checks totaled $2,553.
Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.)
Prepare the adjusting entries at September 30, assuming the NSF check was from a customer on account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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