Graham Company of Moncton received a bank statement from Royal Bank indicating a bank balance of $7,483. Based on Graham’s cheque stubs, the ending cheque book balance was $6,919. Your task is to prepare a bank reconciliation for Graham Company as of May 31, 2013, from the following information (please journalize entries as needed):
a. Cheques outstanding: No. 354, $297; No. 356, $512; No. 347, $684.
b. Deposits in transit, $1,381.
c. Bank service charge, $39.
d. Royal Bank collected a note for Graham, $734, less a $14 collection fee.
e. Notice was received that a cheque from Harry Pride, a customer, was returned NSF, $151.
f. Bank recorded new cheques purchase, $78.