This information relates to the Cash account for Howard Company.
Balance September 1-$16,500; Cash deposited-$64,000
Balance September 30-$17,600; Checks written-$62,800
The September bank statement shows a balance of $16,500 at September 30 and the following memoranda.
Credits Debits
Collection of electronic funds transfer.........$1,830............NSF check: H. Kane.........$560
Interest earned on checking account................45............Safety deposit box rent.........60
At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383.
Instructions
(a) Prepare the bank reconciliation at September 30, 2017.
(b) Prepare a tabular analysis for the adjustments at September 30, assuming the NSF check was from a customer on account. Use the following column headings: Cash, Accounts Receivable, Revenues, and Expenses. Include margin explanations for the changes in revenues and expenses.