The cash account for Computer Systems at February 28, 2015, indicated a balance of $10,635. The bank statement indicated a balance of $14,933 on February 28, 2015.
Comparing the bank statement and the accompanying cancelled cheques and memos with the records reveals the following reconciling items:
a. Cheques outstanding totalled $2,118.
b. A deposit of $2,500, representing receipts of February 28, had been made too late to appear on the bank statement.
c. The bank had collected $4,200 on a note left for collection. The principal amount of the note was $4,000.
d. A cheque for $290 returned with the statement had been incorrectly recorded by Computer Systems as $920. The cheque was for the payment of an obligation to Busser Co. for the purchase of office supplies on account.
e. A cheque drawn for $415 had been incorrectly charged by the bank as $145.
f. Bank service charges for February amounted to $20.
g. An NSF cheque $400, from a client, Karen Guttormson, reported on the bank statement.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.