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
– 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.
1. Prepare a Bank Reconciliation for the company on September 30.
2. Prepare any necessary journal entries for Hawk for its bank reconciliation.