The following information relates to the Cash account in the ledger of Dick Wasson 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 |
$725 |
|
Interest earned on checking account |
$45 |
Safety deposit box rent |
$65 |
On September 30, deposits in transit were $4,150, 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.