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Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information: (a.) The June 30 balance shown on the bank statement is $5,796. (b.) Outstanding checks at June 30 totaled $330. (c.) A deposit of $424 made on June 30 was not included in the balance shown on the bank statement. (d.) The bank statement contained an adjustment of $410 for a note receivable collected by the bank on behalf of Show Me, Inc. ($382 principal and $28 interest). (e.) A bank charge of $34 was made to the account during June. Although the company was expecting a charge, the amount was not known until the bank statement arrived. (f.) The bank erroneously charged a $340 check of Shirt, Inc., against the Show Me, Inc., bank account. (g.) The June 30 balance in the general ledger Cash account, before reconciliation, is $6,026. (h.) The bank statement included a notice that a customer's check for $172 that had been deposited on June 14 had been returned NSF. Required: (1.) Prepare the bank reconciliation for Show Me, Inc., as of June 30. (2.) Prepare the appropriate adjusting entry(ies) or show the reconciling items in a horizontal model, for Show Me, Inc., related to the bank reconciliation.
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