Question

On October 31, 2021, Oriole Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,165. A comparison of the statement with the Cash account revealed the following:

1.		The statement included debit memos of $45 for the printing of additional company cheques and $40 for bank service charges.
2.		Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Oriole as $852. The bank detected the error on the deposit slip and credited Oriole Company for the correct amount.
3.		The September 30 deposit of $995 was included on the October bank statement. The deposit had been placed in the bank’s night deposit vault on September 30.
4.		The October 31 deposit of $970 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31.
5.		Cheques #1006 for $425 and #1072 for $985 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $555, #1284 for $645, and #1285 for $325 had cleared the bank by October 31.
6.		On October 18, the company issued cheque #1181 for $679 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Oriole Company for $796.
7.		A review of the bank statement revealed that Oriole Company received electronic payments from customers on account of $1,885 in October. The bank had also credited the account with $35 of interest revenue on October 31. Oriole had no previous notice of these amounts.
8.		Included with the cancelled cheques was a cheque issued by Lasik Company for $595 that was incorrectly charged to Oriole Company by the bank.
9.		On October 31, the bank statement showed an NSF charge of $815 for a cheque issued by W. Hoad, a customer, to Oriole Company on account. This amount included a $26 service charge by the bank. The company's policy is to pass on all NSF fees to the customer.

1.) Prepare the bank reconciliation at October 31

Answer 1

i)	Oriole Company
	Bank Reconciliation Statement
	Month Ended October 31, 2021
	Cash Balance as per bank statement	10165
	Add: Deposit in Transit	970
	Add: Bank error	595
	Less: Outstanding checks	-1950
	Adjusted Cash Balance	9780
	Cash balance as per books	8967
	Add: Receivable Collected	1885
	Add: Interest Collected	35
	Add: Error in writing check #1181	117
	Less: Bank Service charges	-45
	Less: bank Printing Charges	-40
	Less: error in deposit	-324
	Less: NSF Check	-815
	Adjusted Cash Balance	9780