The following information relates to the Cash account in the ledger of Dick Wasson

Company:

Balance September 1—$17,150; Cash deposited—$64,000

Balance September 30—$17,404; Checks written—-$63,746

The September bank statement shows a balance of $16,422 on September 30 and the following memoranda:

On September 30, deposits in transit were $4,150, and outstanding checks totaled $2,383.
(a) Prepare the bank reconciliation at September 30.
(b) Prepare the adjusting entries at September 30, assuming
(1) The NSF check was from a customer on account, and
(2) No interest had been accrued on thenote.

Transcribed Image Text:

Credits Debits Collection of $1,500 note plus interest $30 S1,530 NSF check: J. E. Hoover $725 Interest earned on checking account $45 Safety deposit box ren S65