The accounting department supplied the following data in reconciling the September
30 bank statement for Clegg Auto.
Ending cash balance per bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,972.67
Ending cash balance per books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,697.76
Deposits in transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,251.42
Bank service charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Outstanding checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,163.51
Note collected by bank including $50 interest (Clegg not yet notified) . . . . . . . . 2,150.00
Error by bank—check drawn by Gregg Corp. was charged to Clegg’s account . . 713.18
A sale and deposit of $1,628.00 were entered in the sales journal and cash receipts journal as $1,682.00.
1. Prepare the September 30 bank reconciliation.
2. Give the journal entries required on the books to adjust the cash account.