Reference no: EM132780925

On February 29, 2020, Lemercier. had a cash account per its general ledger showed a balance of $23,780. The bank statement from versent bank on that date showed the following date showed the following balance.

Checks and Debits           Deposits and Credits             Daily Balance

                                                                                2-28 $21,867

A comparison of the details on the bank statement with the detail in the Cash account revealed the following facts.

1. Cash sales of $1,390 on February 5 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,930. The bank credited Merger Co. for the correct amount.

2. On February 18, the company issued check no. 971 for $1,950 to Reina Rovers on account. The check, which cleared the bank in February, was incorrectly joumalized and posted by W Co. for $1,590. This check had been issued to pay for purchases of Equipment.

3. The statement included a debit memo of $250 for the printing of additional company checks.

4. Included with the cancelled checks was a check issued by Ms, Company to Lumiere Co. for $1,750 that was incorrectly charged to W Co. by the bank.

5. On February 29, the bank statement showed an NSF charge of $995 for check issued by Iggy; Megs, a customer, to 15W Co. on account.

6. Outstanding checks at February 29 totaled $1,453, and deposits in transit were $6,256.

7. A $6,300 note receivable was collected by the bank for W00. on February 14 plus $500 interest. The bank charged a collection fee of $15. No interest has been accrued on the note.

Instructions

Problem 1. Prepare the bank reconciliation at February 29, 2020

Problem 2. Prepare the necessary adjusting entries for versent Co. on account.