BANK RECONCILIATION Raymond Corporation received the following bank statement for the month of October 2009:

Date Checks Deposits Balance 9/30 Beg. balance $ 4,831.50 10/2 $1,204.50 $2,970.18 6,597.18 10/4 43.80 $ 321.70 6,231.68 10/8 905.36 5,326.32 10/10 100.20 60.00 $38.11 5,128.01 10/13 4,000.00 9,128.01 10/14 290.45* 8,837.56 10/17 516.11 309.24 8,012.21 10/19 106.39 431.15 21.72 2,850.63 10,303.58 10/21 3,108.42 7,195.16 10/23 63.89 7,131.27 10/25 290.00** 111.90 6,729.37 10/27 88.90 6,640.47 10/31 20.00*** 1,308.77 5,311.70

*NSF check

**Debit memo

***Service charge The Cash in Bank account of Raymond Corporation provides the following information:

Date Item Debit Credit Balance 10/1 Balance from 9/30 $ 6,553.38 10/2 Check #1908 $ 321.70 6,231.68 10/5 Check #1909 905.36 5,326.32 10/6 Check #1910 100.20 5,226.12 10/6 Check #1911 60.00 5,166.12 10/7 Check #1912 38.11 5,128.01 10/12 Deposit #411 $4,000.00 9,128.01 10/15 Check #1913 516.11 8,611.90 10/16 Check #1914 309.24 8,302.66 10/17 Check #1915 431.15 7,871.51 10/17 Check #1916 21.72 7,849.79 10/18 Deposit #412 2,850.63 10,700.42 10/18 Check #1917 106.39 10,594.03 10/20 Check #1918 63.89 10,530.14 10/20 Check #1919 3,108.42 7,421.72 10/23 Check #1920 111.90 7,309.82 10/25 Check #1921 88.90 7,220.92 10/29 Check #1922 1,803.77 5,417.15 10/30 Check #1923 284.77 5,132.38 10/31 Check #1924 628.32 4,504.06 10/31 Deposit #413 3,408.20 7,912.26 The items on the bank statement are correct. The debit memo is for the payment by the bank of Raymond’s office furniture rent for October.

Required:

. Prepare a bank reconciliation. (Hint: There is one transposition error in the cash account.)

. Prepare adjusting entries based on the bank reconciliation.

. What amount is reported for cash in bank in the balance sheet at October 31?