Daisy Company received a bank statement for February, as follows:
From: Central Bank, Denver, CO 80222
To: Daisy Company, 1313 Williams St., Denver, CO 80218
Date Checks Deposits Balance
Feb. 1 $4,524.80
7 $2,700.33 $8,642.61
9 3,484.81
14 6.00 SC 460.00 CM
16 274.09
21 4,133.60 3,385.49
23 69.69 NSF
28 $6,344.38
SC = Service Charge
NSF =Check Returned
CM = Credit Memo
DM = Debit Memo
The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge. The company's accounting records contained the following information:
Cash balance on February 28 from the books: $2,610.42
Cash Disbursements Cash Receipts
Check No. 155 $2,700.33 Feb. 7 $8,624.61
156 3,484.81 21 3,385.49
157 274.09 All receipts are veri?ed and correct.
158 589.02
159 4,133.60
160 2,742.63
Required:
1. Prepare a bank reconciliation on February 28, 2013, for Daisy.
2. Prepare the journal entries that Daisy should record as a result of the reconciliation.