Question :

Donovan Company received a bank statement for the month of September 2012, which indicates a balance per bank of $4,200. The company's Cash account in the general ledger showed a balance of $2,800 at September 31. Other information that can be relevant in creating bank reconciliation for September follows:

1. The bank returned an NSF check from a customer for $510.

2. The company recorded cash receipts of $810 on September 30 but this amount does not seems on the bank statement.

3. A payroll check properly written and paid by the bank for $1,480 was incorrectly recorded in the cash payments journal for $1,840.

4. Checks which were written in August but still had not been shown to the bank for payment at September 30 amounted to $250.

5. The bank added a credit memorandum for $1,200, which shows a collection of a customer's note by the bank for the company; principal amount of the note was $900 and the remainder was interest.

6. The bank included a $30 debit memorandum for service charges for the month of September.

7. Indentify written in September which have not been paid by the bank at September 30 amounted to $940.

Instructions:

1. Prepare bank reconciliation for Donovan Company for September which reconciles the balance per books and the balance per bank to their adjusted accurate balances.