Bank reconciliation and entries:
The following information was taken from the accounting records of Palmetto Company for the month of January:
- Balance per bank $6,150
- Balance per company records 3,580
- Bank service charge for January 20
- Deposits in transit 940
- Interest on note collected by bank 100
- Note collected by bank 1,000
- NSF check returned by the bank with the
- bank statement 650
- Outstanding checks 3,080
Instructions:
a. Prepare Palmetto's January bank reconciliation.
b. Prepare any necessary journal entries for Palmetto.