The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: 1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. 2. Deposits in transit not recorded by bank, $425. 3. Bank debit memo for service charges, $35. 4. Bank credit memo for note collected by bank, $2,475 including $75 interest. 5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. 6. Checks outstanding, $1,860. Farmer Co. Bank Reconciliation June 30 Cash balance according to bank statement Adjusted balance Cash balance according to company's records Adjusted balance

The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: 1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. 2. Deposits in transit not recorded by bank, $425. 3. Bank debit memo for service charges, $35. 4. Bank credit memo for note collected by bank, $2,475 including $75 interest. 5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. 6. Checks outstanding, $1,860. Farmer Co. Bank Reconciliation June 30 Cash balance according to bank statement Adjusted balance Cash balance according to company's records Adjusted balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I'm a little confused how to prep the bank reconciliation and the journal entrys.
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