Reference no: EM132614005
Question - Gamecock Company's cash account has a year-end balance of $30,530. The balance per the bank statement is $29,480.
Outstanding checks as of year-end totaled $2,050.
Deposits in transit totaled $5,340 at year-end.
An NSF check of $500 is included in the year-end cash balance on the books.
The bank has deducted this amount on the bank statement. The bank incorrectly recorded a deposit as $270 that was correctly recorded by the Gamecock Company as $720.
The Gamecock Company incorrectly recorded a check disbursement on their books for $350 that correctly cleared the bank for $325. The amount was originally posted to Adverting Expense.
The bank statement also shows a service charge of $35 on the account.
The bank collected on note on behalf of the Gamecock Company that included $3,000 in principal and $200 in interest. This is included on the bank statement but is not yet on the books of the Gamecock Company.
Required -
1 - Prepare the bank reconciliation.
2 - Prepare any required journal entries for the Gamecock Company.