PROBLEM 1

In preparing its bank reconciliation for the month of April 2022, Gregg, Inc. has available the following information.

Balance per bank statement, 4/30/22 $39,140

NSF check returned with 4/30/22 bank statement 450

Deposits in transit, 4/30/22 5,000

Outstanding checks, 4/30/22 5,200

Bank service charges for April 20

Note collected by bank 1,000

Balance per book, 4/30/22 38,410

Show all computations.

a. Prepare the bank reconciliation.

b. Prepare the adjusting journal entry or entries.