Gooseberry Inc. had a cash balance on the books of $6171 on May 31. Cash records for May show the following:
Debits/DepositsCredits/Payments
2716 8
544 775
896 88
367 126
2037 970
200
2267
Gooseberry Inc. received the following bank Statement for May:
Bank Statement for May
Beginning Balance
Deposits and other additions:$4,045
May 1625EFT
52,716
10544
15896
18367
311,000BC$6,148
Checks and other deductions:
May 8441NSF
15(check number 1416)8
19340EFT
22(check number 1417)775
29(check number 1418)88
31(check number 1419)216
3125SC-$1,893
$8,300
Additional Data:
The EFT deposti was a receipt of rent revenue. The EFT debit was payment of insurance expense.
The NSF check was received from a customer
The $1000 bank collection was for a note receivable
The correct amount of check 1419 is $216. Gooseberry Inc. mistakingly recorded the check for $126
Requirements:
1. Prepare the bank reconciliation.
2. Prepare the journal entries.