The cash account for Turbocharged Systems at February 29, 2008, indicated a balance of $8,608.13. The bank statement indicated a balance of $17,877.63 on February 29, 2008. Comparing the bank statement and the accompanying canceled checks and memoranda with the records reveals the following reconciling items:

a. Checks outstanding totaled $9,652.40.

b. A deposit of $11,322.90, representing receipts of February 29, had been made too late to appear on the bank statement.

c. The bank had collected $10,250 on a note left for collection. The face of the note was $10,000.

d. A check for $2,380 returned with the statement had been incorrectly recorded by Turbocharged Systems as $2,830. The check was for the payment of an obligation to Yanni Co. for the purchase of office supplies on account.

e. A check drawn for $960 had been incorrectly charged by the bank as $690.

f. Bank service charges for February amounted to $30.

Instructions

1. Prepare a bank reconciliation.

2. Journalize the necessary entries. The accounts have not been closed.