On December 31, 2020, Buttercup Company had a cash balance per book of $10,922.25. The bank statement from Tampa Savings Bank on that date showed a balance of $10,356.90. A comparison of the statement with the cash account revealed the following facts:

1. Deposits in transit were$11,663.10.10.
2. Outstanding checks on December 31 totaled $1,750.875.
3. On December 31, the bank statement showed an NSF charge of 1006.50 for a check issued by Charlie Holston, a customer, to Buttercup Company on account.
4. A $5,383.50 note receivable was collected by the bank for buttercup Company. The bank charged a collection fee of $43.50.
5. Cash sales of $1,474.50 on December 20 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,399.50. The bank credited Buttercup Company for the correct amount.
6. A $3,750 note receivable was collected by the bank for Bollywood Company. The bank charged a collection fee of $26.625. However, the bank incorrectly credited the collected amount and charged the collection fee from Buttercup Company.
7. A $1,250 note receivable was collected by the bank for Buttercup Company. However, the bank incorrectly credited the collected amount and charged a collection fee of $ 35 from Bollywood Company.

Required:

1. Prepare the bank reconciliation statement dated December 31 2020, proceeding to a correct cash balance.
2. Prepare any entries necessary to make the books correct and complete.

Answer rating: 100% (QA)

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