Reference no: EM132791668

Question - Western Flyers received its bank statement for the month of July 2019 with an ending balance of $11,065.00. Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding. Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month. Big Bucks Bank also collected an amount of $5,300 from a client of Western Flyer as payment of a note ($5,000) and interest ($300) earned on a note. Big Bucks Bank charged Flyers a $15.00 fee for the collection service and $20 for issuance of 10 check books. A check for $75.00 from Colin Abraham, a client, was returned with the bank statement marked "NSF". The ending balance of the Western Flyers cash account is $12,875.00.

Required -

a) Prepare a bank reconciliation based on the above information.

b) Prepare any necessary journal entries to update the ledger. Explanation is not required.