Reference no: EM133026638
Question - Hayes & Company is in the process of closing its books for the month of January. You are tasked with reconciling the bank. Please prepare a bank reconciliation and any relevant journal entries based on the following facts:
-Bank Statement has an ending balance of $500,000
-Bank Statement contains a service charge of $3,000
-Bank Statement contains interest income of $2,000
-In the prior month, there were $35,000 of checks that did not clear the bank. In the current month, $15,000 of those prior month checks cleared the bank.
-There were software subscription charges of $50,000 direct debited out of the bank.
-Customers receipts of $75,000 were received via wire.
-A check for a vendor payment was recorded incorrectly for $21,000 in the GL but the correct amount of $12,000 was cashed.
-In December a payment was made to a vendor for $30,000. Hayes & Company had the incorrect payment information and the payment was returned to them in January.
-A check of $1,000 from a customer was deposited and bounced in the same period as there were insufficient funds. A fee of $35 was incurred as a result.