Question

Problem: Cubs Hotel received the following bank statement for October:

		State Bank & Trust 100 N. State Street Chicago, IL 63100
Cubs Hotel 1060 N. Addison Chicago, Il 63111					Bank Statement Account # 34—002231 October 31, 2019
	Beginning Balance 10/1/2019 Total Deposits and credits Total Checks and debits Ending Balance 10/31/2019			$15,000 $7,000 $6,000 $16,000
Checks and Debits				Deposits and Credits
Check Number		Amount		Date	Amount
1462 1463 1464 1465 1466 1467 DM 1468		$1,163.00 62.00 1,235.00 750.00 1,111.00 964.00 15.00 700.00		October   1 October   2 October   6 October 12 October 17 October 22 CM	$1,000.00 1,340.00 210.00 1,940.00 855.00 1,480.00 175.00

The hotel’s unadjusted cash balance was $16,868 on October 31. During October, the hotel recorded the following checks and deposits:

Date	Check Number	Check Amount		Date	Deposit Amount
October   1 October   5 October   6 October   9 October 10 October 14 October 19 October 28	1463 1464 1465 1466 1467 1468 1469 1470	$      62.00 1,235.00 750.00 1,111.00 964.00 70.00 1,500.00 102.00		October   1 October   5 October 10 October 16 October 19 October 29	$1,340.00 210.00 1,940.00 855.00 1,480.00 2,000.00

Other Information:

• The hotel has properly accounted for all items (including bank reconciliations) in previous months.
• Check #1462 was outstanding from September.
• The credit memo was for collection of an account receivable.
• All checks were paid at the correct amount during the period.
• The debit memo was for service charges.
• The September 30 bank reconciliation included a deposit in transit of $1,000.
• Check #1468 was for the purchase of equipment.

Required: Use the information above to complete a bank reconciliation as of October 31 for Cubs Hotel. Use the template on the following page.

Use the space below to complete the bank reconciliation for Cubs Hotel for October.

Balance per Bank           $16,000		Balance per Books                $16,868
Add		Add
Subtract		Subtract
Adjusted Cash Balance		Adjusted Cash Balance

Answer 1