Donald Corporation received the bank statement shown below for the month of October 2009:

The Cash in Bank account of Donald Corporation provides the following information:

The items on the bank statement are correct. The debit memo is for the payment by the bank of Donald's office furniture rent for October.

Required:
1. Prepare a bank reconciliation.
2. Prepare adjusting entries based on the bank reconciliation.
3. What amount is reported for cash in bank on the balance sheet at October31?

Transcribed Image Text:

Checks Deposits Balance 9/30 Beg. balance 2 $1,200 $2,950 $ 300 $35 4,000 2,850 1,305 NSF check **Debit memo Ser vice charge 55555005 7655596220987 ,6 5 2 93 Ba 665555988881007776558 4 2 3 2 2567788 3