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Question -
The bank statement for Adcock Company indicates a balance of $830 on July 31. The cash balance per books had a balance of $390 on this date. The following information pertains be the bank transactions for the company.
1. Deposit of $840 representing cash receipts of July 31, did not appear on the bank statement.
2. Outstanding checks totaled $390.
3. Bank service charges for June amounted to $30.
4. The bank collected a note receivable for the company for $1,200 plus $48 interest revenue.
5. A NSF check for $328 from a customer was returned with the statement.
Required -
a. Prepare a bank reconciliation for July 31.
b. Prepare any adjusting entries necessary as a result of the bank reconciliation.
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