Shelly has just been hired as the bookkeeper for Robinson's Grocery. Her first responsibility is to reconcile the bank account for September 30, 2015. Shelly gathered all the necessary documents and has discovered the following information.
The bank statement had an ending balance at September 30 of $15,693. The previous bookkeeper had recorded total deposits to cash during September of $34,760, and total payments from cash during September of $28,370. The reconciled cash balance on August 31, 2015, was $7,349. An NSF cheque for $548, written by P. Grossman in payment of its account, was returned with the September bank statement. September service charges were $75. Cheque No. 538 had been recorded by the previous book keeper as $5,100, but it was correctly cashed by the bank as $1,500. Cheque No. 538 was written to the building's owner for September rent. Four cheques written in September had not yet cleared the bank account, totalling $2,856. A deposit of $3,879, made after banking hours on September 30, did not appear on the bank statement.
1. Prepare a bank reconciliation as at September 30, 2015.
2. Journalize the necessary entries. The accounts have not been closed.