The cash account for Discount Medical Co. at April 30, 2010, indicated a balance of $4,604. The bank statement indicated a balance of $9,158 on April 30, 2010. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a. Checks outstanding totaled $5,225.

b. A deposit of $3,150, representing receipts of April 30, had been made too late to appear on the bank statement.

c. The bank had collected $4,120 on a note left for collection. The face of the note was $4,000.

d. A check for $2,490 returned with the statement had been incorrectly recorded by Discount Medical Co. as $2,409. The check was for the payment of an obligation to Goldstein Co. for the purchase of office equipment on account.

e. A check drawn for $170 had been erroneously charged by the bank as $1,700.

f. Bank service charges for April amounted to $30.

Instructions

1. Prepare a bank reconciliation.

2. Journalize the necessary entries. The accounts have not been closed.