Bank Reconciliation The Chicago ScooterCompany's bank statement for the month of June indicated a balanceof $10,500. The company's cash account in the general ledger showeda balance of $8,670 on June 30. Other relevant information includesthe following:
- Deposits in transit on June 30 total $7,800.
- The bank statement shows a debit memorandum for a checkprinting charge of $60.
- Check number 160 payable to Simon Company was recorded in theaccounting records for $372 and cleared the bank for this sameamount. A review of the records indicated that the Simon accountnow has a $54 credit balance and the check to them should have been$426.
- Outstanding checks as of June 30 totaled $8,700.
- Check No. 176 was correctly written and paid by the bank for$609. The check was recorded in the accounting records as a debitto accounts payable and a credit to cash for $735.
- The bank returned a NSF check in the amount of $1,026.
- The bank included a credit memorandum for $1,890 representing acollection of a customer's note. The principle portion was $1,800and the interest portion was $90. The interest had not beenaccrued.
Required
a. Prepare the June bank reconciliation for Chicago ScooterCompany.
b. Prepare any necessary adjusting entries.
