Fred White Corporation operates four bowling alleys. The business just received the October 31, 2016, bank statement from City National Bank, and the statement shows an ending balance of $885- Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $65, and a $30 charge for printed checks. In reviewing the cash records, the business identified outstanding checks totaling $470 and a deposit in transit of $1,785- During October, the business recorded a $270 check by debiting Salaries Expense and crediting Cash for $27. The business’s Cash account shows an October 31 balance of $2,138.
Requirements
1. Prepare the bank reconciliation at October 31.
2. Journalize any transactions required from the bank reconciliation.