The information that follows is available from the general ledger and the bank statement of Gentry Corporation for the month of August, 2016:
Bank statement balance, August 31 ................$1,342.50
Note collected by the bank not previously recorded by Gentry .... 600.00
Interest on the preceding note (not previously recorded) ........ 25.00
NSF check returned with the bank statement (not previously recorded) . 21 2.60
Outstanding checks at the end of August .............. 684.70
Bank service charge for August ................. 12.85
Deposit in transit, August 31 .................. 329.42
Required:
1. Starting with the bank statement balance, prepare a schedule to determine Gentry’s cash balance on August 31, prior to any required adjustments.
2. Prepare a bank reconciliation to determine Gentry’s adjusted cash balance on August 31, 2016.
3. Prepare the journal entries necessary to bring Gentry’s cash account balance up to date.