Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August,
2019, J.P. Morgan Chase presented Hula with its bank statement as follows:
Balance, August 31, 2019 .......................................................... $64,900
Service charge for August .......................................................... .... 100
Interest earned during August........................................................... 875
NSF check from Jeffrey Corp. (deposited by Hula) ................................. 450
Note ($11,000) and interest ($425) collected for Hula from a customer ...... 11,425
Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Morgan Chase's cash balance:
Checking account balance per Hula's books................................. $53,453
Outstanding checks as of August 31............................................. 3,700
Deposit in transit at August 31 ................................................... 3,940
Error in recording check 9288 issued by Hula...................................... 63
The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
Required:
Prepare a bank reconciliation schedule at August 31, 2019, in proper form.