Question

P2. The following data pertain to bank transactions of Hawks Company during September:

– The company’s bank statement showed a balance of $40,000 on September 30.

– The balance per book is as of September 30 was $33,900.

– Deposits in transit: $5,000.

– Outstanding checks: $8,000.

– The bank collected a note for the company amounted $4,500 in

which $4,000 was principal and $500 was interest. The bank

deposited $4,400 to the company account after charging $100

collection fee.

– The bank service charge for the month: $100.

– Included in the bank statement was a check from a customer in the

amount of $1,200 which was marked NSF by the bank.

Instructions:

1. Prepare a Bank Reconciliation for the company on September 30.

2. Prepare any necessary journal entries for Hawk for its bank reconciliation.



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