French's Store deposits all receipts intact on the day received and makes all payments by check; and
Question:
French's Store deposits all receipts intact on the day received and makes all payments by check; and on October 31, after all posting was completed, its Cash account showed a \(\$ 4,530\) debit balance. However, its October 31 bank statement showed only \(\$ 3,870\) on deposit in the bank on that day. Prepare a bank reconciliation for the store, using the following information:
a. Outstanding checks, \(\$ 600\).
b. Included with the October canceled checks returned by the bank was a \(\$ 12\) debit memorandum for bank services.
c. Check No. 426, returned with the canceled checks, was correctly drawn for \(\$ 36\) in payment of the telephone bill and was paid by the bank on October 9, but it had been recorded with a debit to Telephone Expense and a credit to Cash as though it were for \(\$ 63\).
d. The October 31 cash receipts, \(\$ 1,275\), were placed in the bank's night depository after banking hours on that date and were unrecorded by the bank at the time the October bank statement was prepared.
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