The Seattle First Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following: Deposits in transit on September 30 total $9,850. The bank statement shows a debit memorandum for a check printing charge of $95. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568. Outstanding checks as of September 30 totaled $11,600. Check No. 276 was correctly written and paid by the bank for $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. The bank returned a NSF check in the amount of $1,110. The bank included a credit memorandum for $2,620 representing a collection of a customer’s note. The principle portion was $2,400 and the interest portion was $220. The interest had not been accrued.
