Reference no: EM132635556

The following data pertain to Hearth Company:

1. Balance per bank statement dated June 30, 2003, is $61,140.

2. Balance of the Cash in Bank account on the company books as of June 30, 2003, is $17,970.

3. Outstanding cheques as of June 30, 2003, total $29,931.

4. Bank deposit of June 30 for $4,710 was not included in the deposits per the bank statement.

5. The bank had collected proceeds of a note, $45,225 (of which $225 was interest), that it had credited to the Hearth Company account. The bank charged the company a collection fee of $30 on the above note.

6. The bank erroneously charged the hearth Company account for a $21,000 debit memo of another company that has a similar name.

7. Bank service charges for June, exclusive of the collection fee, amounted to $150.

8. Among the cancelled cheques was one for $1,035 given in payment of an account. The bookkeeper had recorded the cheque at $1,440 in the company records.

9. A cheque of Crosley, a customer, for $6,231, deposited on June 20, was returned by the bank marked NSF. No entry has been made to reflect the returned cheque on the company records.

10. A cheque for $2,670 of Moran, a customer, which had been deposited in the bank, was erroneously recorded by the bookkeeper as $2,940. The cheque had been received as a payment on the customer's account receivable.

Required:

Problem 1: Make a bank reconciliation as of June 30, 2003, and any necessary journal entry or entries to correct the account.