grossfeld company of omaha nebraska provides liquid fertilizer 269883

Grossfeld Company of Omaha, Nebraska, provides liquid fertilizer and herbicides to regional farmers. On July 31, 2012, the company’s Cash account per its general ledger showed a balance of $5,876.70.

The bank statement from Tri State Bank on that date showed the following balance.

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A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1. The bank service charge for July was $32.

2. The bank collected a note receivable of $900 for Grossfeld Company on July 15, plus $48 of interest. The bank made an $18 charge for the collection. Grossfeld has not accrued any interest on the note.

3. The July 31 receipts of $1,339 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.

4. Company check No. 2480 issued to S. Tully, a creditor, for $471 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $417.

5. Checks outstanding on July 31 totaled $2,480.10.

6. On July 31, the bank statement showed an NSF charge of $818 for a check received by the company from L. Weare, a customer, on account.

Instructions

(a) Prepare the bank reconciliation as of July 31, 2012.

(b) Prepare the necessary adjusting entries at July 31,2012.