College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 5

Preparing a bank reconciliation statement.
Cantu Office Supply Company received a bank statement showing a balance of $68,005 as of March 31, 2013. The firm's records showed a book balance of $69,487 on March 31. The difference between the two balances was caused by the following items. Prepare a bank reconciliation statement for the firm as of March 31 and the necessary journal entries from the statement:
1. A debit memorandum for $50, which covers the bank's collection fee for the note.
2. A deposit in transit of $3,700.
3. A check for $248 issued by another firm that was mistakenly charged to Cantu's account.
4. A debit memorandum for an NSF check of $6,135 issued by Wilson Construction Company, a credit customer.
5. Outstanding checks: Check 3782 for $2,200; Check 3840 for $151.
6. A credit memorandum for a $6,300 noninterest-bearing note receivable that the bank collected for the firm.