Question

On October 31 Windsor Ltd. received its bank statement from Provincial Bank. It stated that Windsor had a balance of $9,480 at October 31. The company’s general ledger showed a cash balance of $10,205 at that date. A comparison of the bank statement and the accounting records revealed the following information:

●		Bank service charges for the month were $50.
●		The company had written and mailed out cheques with a value of $1,380 that had not yet cleared the bank.
●		A cheque from one of Windsor’s customers in the amount of $840 that had been deposited during the last week of October was returned with the bank statement as NSF.
●		An electronic funds transfer payment (EFT) of $255 for monthly insurance expense was automatically deducted from Windsor’s bank account on October 22. Windsor’s bookkeeper had forgotten to record this transaction.
●		During the month, the company’s bookkeeper had recorded a cheque (#1872) paid for utilities as $575 rather than $755 (which was the amount written on the cheque and processed by the bank).
●		The cash receipts for October 31 amounted to $780 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October.

Prepare the bank reconciliation for Windsor at October 31.

Answer 1