The bank statement for Allen Co. indicates a balance of $8,000 on June 30, 2013.

After the journal entries for June had been posted, the cash account had a balance of $3,675.

Prepare a bank reconciliation on the basis of the following reconciling items:

a) Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.

b) Deposits in transit not recorded by the bank, $500.

c) Bank debit memorandum for service charges, $25.

d) Bank credit memorandum for note collected by the bank, $2,850, which includes $50 interest.

e) Bank debit memorandum for $218 NSF check from Alice Bell, a customer.

f) Checks outstanding, $2,200.

After you prepare the bank reconciliation, record the adjusting entries.

General Journal

Date

Description

Post Ref.

Debit

Credit