As the book keeper of Rose Company of Drumheller, you received the bank statement from TD Canada Trust indicating a balance of $5,820. The ending cheque book balance was $6,321. Prepare the bank reconciliation for Rose Company as of July 31, 2014, and prepare journal entries as needed based on the following:
a. Deposits in transit, $2,875.
b. Bank service charges, $24.
c. Cheques outstanding: No. 111, $478; No. 115, $1,147.
d. TD Canada Trust collected a note for Rose, $1,770, less a $12 collection fee.
e. NSF cheque, $525.
f. Rose Company records cheque No. 107 as $900 to pay the month’s rent. The cancelled cheque and bank statement show the actual cheque was $800.
g. The bank made an error by deducting a cheque for $560 issued by another business.