E7-9
This information relates to the Cash account in the ledger of Hawkins Company.
Balance September 1—$16,400; Cash deposited—$64,000
Balance September 30—$17,600; Checks written—$62,800
The September bank statement shows a balance of $16,500 at September 30 and the following memoranda.
Credits Debits
Collection of $1,800 note plus interest $30 $1,830
Interest earned on checking account 45
Debits
NSF check: H. Juno $560
Safety deposit box rent 60
At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383
Prepare bank reconciliation and adjusting entries.
A. Prepare the bank reconciliation at September 30, 2012.
B. Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.
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