Brachycephalic Inc. received its September 30, 2017 bank statement. It showed a balance of $8,300. It also showed bank charges of $50, collection of Louis Brandeis’ note for $2,400 and interest of $72, a collection fee of $11, and that Willy Brandt’s check of $506.40 was uncollectible. Brachycephalic Inc.’s ledger showed a cash balance of $7939.70. Comparison of the records with the bank statement revealed the following:
A deposit in transit of $6,780.
Checks outstanding on September 30 of
o 4221 $4012.00
o 4222 260.10
The bookkeeper had entered as $120 a $180 customer check that was for paymenton account.
Check #4198 for $982 which had been issued to pay utilities had been entered as $838.
Check #4212 for $116.40 which had been issued to buy office supplies had been entered as $1,164.
1. Prepare the September 30, 2017 bank reconciliation.
2. Prepare the required entries on the books of Brachycephalic Inc.