On October 31 George Flaum, the accountant for Kits & Pups Groom ing, received the bank statement dated October 30. After comparing the company’s checkbook with the bank statement, George found the following:

1. The checkbook balance on October 31 is $960.

2. The ending bank statement balance is $1,380.

3. The bank statement shows a service charge of $10.

4. A deposit of $405 was made on October 30, but does not appear on the bank statement.

5. Check 768 for $529 and Check 772 for $306 are outstanding.

Instruction 

In your working papers:

1. Record the bank service charge in the checkbook.

2. Reconcile the bank statement.

3. Journalize the bank service charge in the general journal, page 4.

4. Post the bank service charge journal entry to the appropriate general ledger accounts.