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The Cash account of First on Alert Security Systems reported a balance of $2,470 at December 31, 2012. There were outstanding checks totaling $700 and a December 31 deposit in transit of $100. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $3,700. Included in the bank balance was a collection of $640 on account from Brendan Ballou, a First on Alert customer who pays the bank directly. The bank statement also shows a $30 service charge and $20 of interest revenue that First on Alert earned on its bank balance.
Requirement
Prepare First on Alert's bank reconciliation at December 31.
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