The cash account for Kahn Inc. on November 30, 2018, indicated a balance of $5,699. The bank statement indicated a balance of $13,167 on November 30, 2018. The following reconciling items were discovered. Checks outstanding totaled $5,175. A deposit of $3,842, representing cash receipts of November 30, had been made too late to appear on the bank statement. The bank had collected for Kahn $4,800 on a note left for collection. The face of the note was $4,200. Kahn had recorded a check for $2,040 as a $2,400. The check was for the payment of a 3-year insurance policy. A check for $1,176 had been incorrectly charged by the bank as $176. Bank service charges for November amounted to $25. Required: Prepare the bank reconciliation and journalize the necessary entries.
The cash account for Kahn Inc. on November 30, 2018, indicated a balance of $5,699. The bank statement indicated a balance of $13,167 on November 30, 2018. The following reconciling items were discovered.
Checks outstanding totaled $5,175.
A deposit of $3,842, representing cash receipts of November 30, had been made too late to appear on the bank statement.
The bank had collected for Kahn $4,800 on a note left for collection. The face of the note was $4,200.
Kahn had recorded a check for $2,040 as a $2,400. The check was for the payment of a 3-year insurance policy.
A check for $1,176 had been incorrectly charged by the bank as $176.
Bank service charges for November amounted to $25.
Required: Prepare the bank reconciliation and journalize the necessary entries.
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