CL -Bank Reconciliation

Jawara Company’s books show a cash balance at Besto Bank (balance per book) on September 30,
2020, of $8,780. The bank statement from Besto Bank on that date showed a balance of $8,404. An
examination of Jawara company’s accounting records and the bank statement revealed the
following fact:

1. A deposit of $2,176 that Jawara mailed September 30 does not appear on the bank
statement (received by bank on October 1)
2. Check written in September but not charged to the bank statement are:
 Check #0234 $120
 Check #0238 $176
 Check #0241 $160
3. Cash sales of $930 on September 20 were deposited in the bank. The cash receipt journal
entry and the deposit slip were incorrectly made for 990. The bank credited Jawara
Company for the correct amount.
4. On September 23, the company issued check No.0824 for $695 To John Smith and was
correctly paid by the bank. However, it was recorded as $659.
5. A $2,000 note receivable was collected by the bank for Jawara Company on September 30
plus $40 interest. The bank charged a collection fee of $10. No interest has been accrued.
6. On September 30, the bank statement showed an NSF charge of $560 for check issued by L.
Rees, to Jawara Company on account.
7. The statement included a debit memo of $20 for the bank service charge and $10 for
printing of additional company checks.

Instruction:

a. Prepare Bank Reconciliation for September 2020

b. Journalize the adjusting entries at September 30 on the books of Jawara Company