Prepare any journal entries based on the following data regarding the bank reconciliation prepared by New Jersey Company for the month of July 2012.
Part A. A customer’s check for $260 was returned with the bank statement and stamped NSF.
Part B. Outstanding checks amount to $850.
Part C. Service charges for July per bank statement are $25.
Part D. Check #5207 for $8,450 for office equipment was erroneously recorded by the bookkeeper as $4,850.
Part E. The bank collected a $2,500 note receivable on behalf of Washington & Leigh. Interest on the note amounted to $50.
Part F. A deposit ticket correctly prepared for $695 appeared on the bank statement as a deposit for $965.
Part G. Check #930 for $900 for rent expense was erroneously recorded by the bookkeeper as $90.
REQUIRED: Prepare the necessary reconciliation entries for each part. Be sure to note which account is debited and credited.