Problem
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,378. The company's Cash account in its general ledger showed a $1,025 debit balance.
The following information was also available as of September 30.
• The bank deducted $135 for an NSF check from a customer deposited on September 15.
• The September 30 cash receipts, $1,270, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
• A $17 debit memorandum for checks printed by the bank was included with the canceled checks.
• Outstanding checks amounted to $1,175.
• Included with the bank statement was a credit memo in the amount of $885 for an EFT in payment of a customer's account.
• Included with the canceled checks was a check for $285, drawn on the account of another company.
Required:
a. Prepare a bank reconciliation as of September 30.