Bank Reconciliation The Daisy Company received a bank statement for February 2007, as follows:
From: Central Bank, Denver, Co. 80222
To: Daisy Company, 1313 Williams St., Denver, Co. 80218
|
Date |
Checks |
Deposits |
Balance |
|
Feb. 1 |
$4,524.80 |
||
|
7 |
$2,700.33 |
$8,642.61 |
|
|
9 |
3,484.81 |
||
|
14 |
6.00 SC |
460.00 CM |
|
|
16 |
274.09 |
||
|
21 |
4,133.60 |
3,385.49 |
|
|
23 |
69.69 NSF |
||
|
28 |
$6,344.38 |
|
SC 5 Service Charge |
NSF 5 Check Returned |
|
CM 5 Credit Memo |
DM 5 Debit Memo |
The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, less a $5 service charge. The company’s accounting records contained the following information:
Cash balance on February 28 from the books: $2,610.42
|
Cash Disbursements |
Cash Receipts |
||
|
Check No. 155 |
$2,700.33 |
Feb. 7 |
$8,624.61 |
|
156 |
3,484.81 |
21 |
3,385.49 |
|
157 |
274.09 |
All receipts are verified and correct |
|
|
158 |
589.02 |
||
|
159 |
4,133.60 |
||
|
160 |
2,742.63 |
||
Required
1. Prepare a bank reconciliation on February 28, 2007 for the Daisy Company.
2. Prepare the journal entries that the Daisy Company should record as a result of the reconciliation.