The bank statement for Urethane Company for June 30, 2013, indicates a balance of $9,143.11. All cash receipts are deposited each evening in a night depository, after banking hours.

The accounting records indicate the following summary data for cash receipts and payments for June:

Comparing the bank statement and the accompanying canceled checks and memorandums with the records reveals the following reconciling items:

a. The bank had collected for Urethane Company $1,030 on a customer’s note left for collection. The face of the note was $1,000.

b. A deposit of $1,852.21, representing receipts of June 30, had been made too late to appear on the bank statement.

c. Checks outstanding totaled $5,265.27.

d. A check drawn for $157 had been incorrectly charged by the bank as $175.

e. A check for $30 returned with the statement had been recorded in the company’s records as $300. The check was for the payment of an obligation to Avery Equipment Company for the purchase of office supplies on account.

f. Bank service charges for June amounted to $78.20.

Instructions

1. Prepare a bank reconciliation for June.

2. Record the effects on the accounts and financial statements that should be made by Urethane Company based upon the bank reconciliation.