The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journal entries for June had been posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:

Cash sales of $742 had been erroneously recorded in the journal as $724.
Deposits in transit not recorded by bank, $425.
Bank debit memo for service charges, $35.
Bank credit memo for note collected by bank, $2,475 including $75 interest.
Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer.
Checks outstanding, $1,860.


Farmer Co.
Bank Reconciliation
June 30
Line Item Description Amount Amount
Cash balance according to bank statement $Cash balance according to bank statement

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Adjusted balance $Adjusted balance
Cash balance according to company's records $Cash balance according to company's records

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Total additions Total additions

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Total deductions Total deductions
Adjusted balance $Adjusted balance