The cash account for Interactive Systems at February 28, 2010, indicated a balance of $7,635. The bank statement

The cash account for Interactive Systems at February 28, 2010, indicated a balance of $7,635. The bank statement indicated a balance of $13,333 on February 28, 2010. Comparing the bank statement and the accompanying canceled checks and memos with the records reveal the following reconciling items:

a.  Checks outstanding totaled $4,118.

b.  A deposit of $4,500, representing receipts of February 28, had been made too late to appear on the bank statement.

c.  The bank had collected $5,200 on a note left for collection. The face of the note was $5,000.

d.  A check for $290 returned with the statement had been incorrectly recorded by Interactive Systems as $920. The check was for the payment of an obligation to Busser Co. for the purchase of office supplies on account.

e.  A check drawn for $415 had been incorrectly charged by the bank as $145.

f.  Bank service charges for February amounted to $20.

Required:

1.  Prepare a bank reconciliation.

2.  Journalize the necessary entries. The accounts have not been closed.