On May 31, 2008, James Logan Company had a cash balance per books of $6,559.53. The bank statement from Farmers State Bank on that date showed a balance of $6,205.76. A comparison of the statement with the cash account revealed the following facts.
The statement included a debit memo of $31.70 for the printing of additional company checks.
Cash sales of $631.86 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $681.86. The bank credited Logan Company for the correct amount.
Outstanding checks at May 31 totaled $560.02. Deposits in transit were $1,922.95.
On May 18, the company issued check No. 1181 for $885.00 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $858.00.
A $2,530 note receivable was collected by the bank for Logan Company on May 31 plus $73.89 interest. The bank charged a collection fee of $20.04. No interest has been accrued on the note.
Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $787.72 that was incorrectly charged to Logan Company by the bank.
On May 31, the bank statement showed an NSF charge of $678.27 for a check issued by Sandy Grifton, a customer, to Logan Company on account.