Reference no: EM133129881

Question - Bank Reconciliation - McDermott Company's bank statement for September 30 showed an ending cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.

a) The bank deducted $125 for an NSF check from a customer deposited on September 15.

b) The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.

c) A $15 debit memorandum for checks printed by the bank was included with the canceled checks.

d) Outstanding checks amounted to $1,145.

e) Included with the bank statement was a credit memo in the amount of $875 for an EFT in payment of a customer's account.

f) Included with the canceled checks was a check for $275, drawn on the account of another company.

Required -

a. Prepare a bank reconciliation as of September 30.

b. Prepare the journal entries for the items on the company's bank reconciliation as of September 30.