Question - The accounting records and bank statement for Walters, Inc. revealed the following information for April 30, 2010:
Bank statement balance, April 30, 2010 $51,000
Credit memo with bank statement for interest earned during April on bank account 15
Debit memo with bank statement for April's service charge 27
Deposits in transit on April 30 2,000
Cash on hand 500
NSF customer check on April 30 1,000
A $175 deposit made on April 3 was recorded incorrectly by the bank as 125
The bank collected a customer's note receivable (including 10% interest) 1,100
Outstanding checks on April 30 3,900
Cash account balance, April 30, 2010 50,000
Required:
a. Prepare a bank reconciliation using good format. Be sure to include the "cash shortage".
b. Prepare any necessary adjusting journal entries for April 30, 2010. Be sure to include the "cash shortage".