Question - Bobs burgers, deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on October 31, its Cash account shows a debit balance of $18,719. The company's bank statement as of October 31 shows an ending cash balance of $16,051. The following information was also available.
Outstanding checks as of October31 total $2,326.
Included with the bank statement was a debit memo in the amount of $100 for service charges.
Check No. 2519, listed with the canceled checks, was correctly drawn for $870 in payment of a utility bill on October 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $980.
The October 31 cash receipts of $3,620 were placed in the bankâs night depository after banking hours and were not recorded on the October 31 bank statement.
The bank deducted $1,384 for an NSF check from a customer deposited on December 10.
Required: Prepare the bank reconciliation as of October31.