Given the information provided below, prepare 1, a bank reconciliation in proper format, and 2, the necessary journal entries for the month of April for Donovan Company.
1. Balance per Bank on April 30-$20,601
2. Balance per Books on April 30-$19,262
3. Total outstanding checks at April 30-$2,180
4. Debit memoranda:
a. NSF check from Levi Co.-$475
b. Printing company checks-$45
c. Payment to bank of $1,200 note owed bank by Donovan plus $100 interest.
5. Credit memorandum: Collection of note receivable for $1,600 plus $240 interest less $50 collection fee.
6. Errors:
a. A check written this month to Nuance Co. for office supplies cleared the bank at the correct amount of $420,
but was recorded by Donovan at $240.
b. The bank charged a $270 check of Dylan Company against Donovan's account this month.
7. Deposit in transit on April 30-$361.
Required:
1. Prepare bank reconciliation in proper format
2. Prepare journal entries