the cash account for bonita medical co at september 30 267134

The cash account for Bonita Medical Co. at September 30, 2008, indicated a balance of $5,335.30. The bank statement indicated a balance of $5,604.60 on September 30, 2008. Comparing the bank statement and the accompanying canceled checks and memoranda with the records revealed the following reconciling items:

a. Checks outstanding totaled $4,790.45.

b. A deposit of $9,226.15, representing receipts of September 30, had been made too late to appear on the bank statement.

c. The bank had collected $7,725 on a note left for collection. The face of the note was $7,500.

d. A check for $4,315 returned with the statement had been incorrectly recorded by Bonita Medical Co. as $3,415. The check was for the payment of an obligation to Rowe Co. for the purchase of office equipment on account.

e. A check drawn for $230 had been erroneously charged by the bank as $2,300.

f. Bank service charges for September amounted to $50.

Instructions

1. Prepare a bank reconciliation.

2. Journalize the necessary entries. The accounts have not been closed.