The information below relates to the Cash account in the ledger of Robertson 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 memoranda.
|
Credits |
Debits |
||
|
Collection of $1,500 note plus interest $30 |
$1,530 |
NSF check: J. E. Hoover |
$425 |
|
Interest earned on checking account |
$45 |
Safety deposit box rent |
$65 |
At September 30, deposits in transit were $4,450, and outstanding checks totaled $2,383.
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.