Q. (a) Bluegrass Tonight is a nightclub in Nashville. The information necessary for preparing bank reconciliation for the company at November 30 appears below:
1. As of November 30, cash per the bank statement is $41,631 per the accounting records, $48,609.
2. Cash receipts of $9,366 on November 30 were not deposited until December 1.
3. Among the paid checks returned by the bank was a stolen check for $1,512 paid in error after Bluegrass Tonight had officially notified the bank not to make payment. Thus, payment of this check was a bank error and should not have been charged against Bluegrass Tonight’s bank account.
4. The following memoranda accompanied the bank statement:
a. A debit memo for service charges $21
b. A debit memo attached to an $1,167 check which Bluegrass had accepted from a customer and deposited in its account, but which the bank had returned with the marking “NSF”
c. A credit memo for interest earned on the account during November, $135.
5. The following checks had been issued by the nightclub but had not been paid by the bank as of November 30: No.921 for $2,346; No. 924 for $1,446; and No. 925 for $1,161.
Instructions: Prepare the November 30 bank reconciliation. Pass necessary journal entries