Module 10 Gooseberry Inc. had a cash balance on the books of $6171 on May 31.

Gooseberry Inc. had a cash balance on the books of $6171 on May 31. Cash records for May show the following: 

 

Debits/DepositsCredits/Payments

 

2716              8 

  544              775 

  896              88 

  367             126 

2037             970 

              200 

      2267 

  

Gooseberry Inc. received the following bank Statement for May:

    

Bank Statement for May 

    

Beginning Balance 

Deposits and other additions:$4,045 

  

May 1625EFT 

52,716 

10544 

15896 

18367 

311,000BC$6,148 

  

Checks and other deductions: 

May 8441NSF 

15(check number 1416)8 

19340EFT 

22(check number 1417)775 

29(check number 1418)88 

31(check number 1419)216 

3125SC-$1,893 

 $8,300 

  

Additional Data: 

The EFT deposti was a receipt of rent revenue.  The EFT debit was payment of insurance expense.

The NSF check was received from a customer 

The $1000 bank collection was for a note receivable 

The correct amount of check 1419 is $216. Gooseberry Inc. mistakingly recorded the check for $126

  

Requirements:

1.  Prepare the bank reconciliation.

2.  Prepare the journal entries.