Merrifield Lawn Care's bank statement at August 31 showed an ending balance of $23,716.87. The unadjusted cash account balance for Merrifield is $20,237.98. The following data were gathered by Merrifield's accountant:Check number 2143 was correctly written for $427. It was recorded in the company's books as $472 for utilities.Outstanding checks as of August 31: $7,128.71NSF check from customer: $71.82Debit memo related to the returned deposit: $8.00Credit memo related to interest earned: $10.00Deposits in transit: $3,625.00
Required:Prepare a bank reconciliation for Merrifield Lawn Care at August 31.Indicate how each of the required adjusting entries impact the financial statements.

Question

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The Answer of Merrifield Lawn Care's bank statement at August 31 showed an ending balance of $23,716.87. The unadjusted cash account balance for Merrifield is $20,237.98. The following data were gathered by Merrifield's accountant:Check number 2143 was correctly written for $427. It was recorded in the company's books as $472 for utilities.Outstanding checks as of August 31: $7,128.71NSF check from customer: $71.82Debit memo related to the returned deposit: $8.00Credit memo related to interest earned: $10.00Deposits in transit: $3,625.00
Required:Prepare a bank reconciliation for Merrifield Lawn Care at August 31.Indicate how each of the required adjusting entries impact the financial statements.

Merrifield Lawn Care's Bank Statement at August 31 Showed an Ending