The October 1, bank statement of Blake’s Hamburger just arrived from First State Bank.

To prepare the bank reconciliation, you gather the following additional data:
a.The following checks are outstanding at October 31:

b. On October 31, Blake’s Hamburger’s treasurer deposited $381, but this deposit does not appear on the bank statement.

c. The bank statement includes a $410 deduction for check #1668 written by Danson Freight rather than Blake’s Hamburger. Blake’s Hamburger notified the bank of this bank error.

d. Blake’s Hamburger’s Cash account shows a balance of $11,200 on October 31.
Requirements 1. Prepare the bank reconciliation for October 31.
2. Record the entries called for by the reconciliation. Include an explanation for each entry.

Transcribed Image Text:

October Bank Statement: Bal, Oct 1 Deposits: EFT-rent EFT-deposit Interest Checks: Other Charges: Service charge NSF check # 998 NSF check #201 Bal, Oct 31 $900 200 $12,769 16 1,116 No. Amount 807 600 808 400 1668 410 (1,410) $ 7 67 192 (266) $12,209