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Thunder Buddies Inc., a talking teddy bear manufacturer, needs your assistance in reconciling its bank. The companys books show a cash balance of $1,207.95 on
- Thunder Buddies Inc., a talking teddy bear manufacturer, needs your assistance in reconciling its bank. The companys books show a cash balance of $1,207.95 on October 31 while the October bank statement shows an ending balance of $1,735.53. An examination of the companys records and the bank statement provide you with the following information.
- A deposit of $133.00 made on October 31 does not appear on the bank statement.
- Checks written in October but not included on the October bank statement totaled $595.59.
- Bank shows a $140.00 note receivable collected from TED, a customer, on October 30th.
- Bank shows $7.81 of dividend income wired from the McFarlane investment account.
- Bank charged your firm $6.25 for service fees.
- Bank returned one of your customers checks (Sam J. Jones) for $64.07 stamped NSF and charged us a fee of $17.50 for the inconvenience.
- You discover that you recorded check #7322 as $311 when it was really for $131 in payment of an accounts payable.
- You discover that the bank incorrectly charged your account for $175 for a different companys check (Flash Gordon Enterprises).
Please prepare the bank reconciliation and record all required adjusting journal entries. Please label your bank reconciliation amounts for ease of grading.
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