Zing Corp. prepares monthly bank reconciliations as part of its cash controls. Zing's bank provided the following amount about Zing's cash balance at the bank for during the month of April 2020:
Balance, April 30, 2020............................................................................ $74,350
Service charge for April ....................................................................................75
Note ($3,000) and interest ($90) collected for Zing from a customer................................ 3,090
Interest earned during April .............................................................................. 140
NSF check from Orange Corp. (deposited by Zing) for goods purchased on account.......... 470
Zing then analyzed its cash balance on its own set of books, revealing the following details:
Checking account balance per Zing's books ........................................ $72,329
Deposit in transit at April 30 ............................................................. 2,100
Outstanding checks as of April 30....................................................... 1,400
Error in recording a check issued by Zing. (Correct amount of the check
is $737, but was recorded as a cash disbursement of $773. The check
was issued to pay for merchandise originally purchased on account.) ................. 36
Required:
1. Prepare a bank reconciliation at April 30, 2020, in proper form.
2. Record any necessary adjusting journal entries.