Prepare Bank Reconciliation

Stevens Company’s August 31st bank statement shows a balance of $14,750. McKnight’s books show a August 31st cash balance of $13,600. Stevens also has the following information: Deposits in transit as of August 31st, $1,000 Outstanding checks as of August 31st, $2,500 0 service charge reported on the bank statement NSF check returned with bank statement, $1,500 Interest on note receivable collected by the bank, $1,250

Required: Hide Prepare Stevens Company’s bank reconciliation as of August 31st.

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Prepare any necessary journal entries resulting from the reconciliation.

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