Your assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.

Required
1. Prepare a proper bank reconciliation showing the true Cash balance.
2. Prepare the necessary journal entries.

Brandon Company Bank Reconciliation May 31, 2014 Balance per books May 31 Add: 9,500 Note collected Interest on note Deposit in transit 1,000 60 2,455 3,515 13,015 Deduct Bank charges NSF cheque, Rhonda Teal Outstanding cheques Error in cheque #78 issued for $762 and recorded 5 10 500 1,800 in the books as $726 (Accounts Payable-Delta Co.) 2,346 10,669 9,359 5 1,310 .. 36 Indicated bank balance Balance per bank statement Discrepancy