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The bank statement for Marley Co. indicates a cash balance of $10,000.50 on June 30, 2015. The cash account in Marley’s records had a balance of $4,677.10. Illustrate the adjustments to the accounts and their effect on Marley’s financial statements, based on the following reconciling items:
Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.
Deposits in transit not recorded by bank, $700.
Bank debit memorandum for service charges, $30.
Bank credit memorandum for note collected by bank, $2,050, including $50 interest.
Bank debit memorandum for $207.40 NSF (not sufficient funds) check from Alice Martin, a customer.
Checks outstanding, $4,192.80.
For the Statement of Cash Flows, list entries in order of Operating, Investing, and then Financing. Round your answers to two decimal places. For all other blanks, list amounts in the order given in the preceding reconciling items.
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