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.
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