According to the bank statement, the bank balance as of October 31 was $8,765
The information below was used to prepare a bank reconciliation for Lorena Company at October 31:
⢠According to the bank statement, the bank balance as of October 31 was $8,765. According to the books, the cash balance as of October 31 is $9,557.
⢠Outstanding checks totaled $1,433.
⢠A customer’s check for $999 was returned for NSF.
⢠October’s service charge was $100.
⢠Bank collected $1,600 from a customer of Lorena Company in payment of a note receivable.
⢠A new bookkeeper had problems posting checks and recording cash receipts:
1. Check #930 for Salaries Expense written for $930, recorded as $430.
2. A cash sale for $2,300 on October 15 was not recorded by the bookkeeper since she was in a hurry to go to lunch.
⢠A deposit was made by the company for $900. This was the correct amount, however, the bank made a mistake and recorded the deposit as $890.
⢠Deposits made at month-end totaled $4,516; these were not shown on the bank statement.
Required:
1. Prepare the bank reconciliation at October 31.
