The information below relates to the Cash account in the ledger of Reston Company.


Balance September 1- \(\$ 17,150\); Cash deposited- \(\$ 64,000\).

Balance September \(30-\$ 17,404\); Checks written- \(\$ 63,746\).

The September bank statement shows a balance of \(\$ 16,422\) on September 30 and the following memorandum:

At September 30, deposits in transit were \(\$ 4,500\) and outstanding checks totaled \(\$ 2,383\).

\section*{Instructions}

(a) Prepare the bank reconciliation at September 30 .

(b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.

Transcribed Image Text:

Credits Collection of $1,500 note plus interest $30 Interest earned on checking account Debits $1,530 $45 NSF check: J. Hower $410 Safety deposit box rent $30