Reference no: EM132505388

Assume the following circumstances for Feeter Plumbing Company, a small business located in Northern Ohio.

1. After all posting is up to date, at the end of July 31, the book balance shows $32,760, and the bank statement balance shows $77,040.
2. Check 5523 for $9,620 and 6547 for $10,000 are outstanding.
3. Check 5386 for $2,000 is removed from the bank account correctly but is recorded on the accounting records for $1,760. This was in payment of dues. The effects of this transaction resulted in an error of $320 that must be deducted from the company's book balance.
4. The July 31 night deposit of $34,300 was delivered to the bank after hours. As a result, the deposit is not on the bank statement, but it is on the financial records.
5. Upon review of the bank statement, an error is uncovered. A check is removed from the account from Feeter for $240 that should have been removed from the account of another customer of the bank.
6. In the bank statement is a note stating that the bank collected $60,000 in charges (payments) from the credit card company as well as $1,800 in interest. This transaction is on the bank statement but not in the company's financial records.
7. The bank notified Feeter that a $2,200 check was returned unpaid from customer Berson due to insufficient funds in Berson's account. This check return is reflected on the bank statement but not in the records of Feeter.
8. Bank service charges for the month are $80. They have not been recorded on Feeter's records.

Question 1: Prepare the bank reconciliation with explanation and do the adjusting entries.