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1,344 Wells Company's records for October and their bank statement dated October 31, 2019, showed the following information: BANK STATEMENT WELLS COMPANY'S BOOKS October 1
1,344 Wells Company's records for October and their bank statement dated October 31, 2019, showed the following information: BANK STATEMENT WELLS COMPANY'S BOOKS October 1 balance $430 October 1 balance $700 (AFTER reconciling in September) Amounts Paid in October (in total) 1,284 October Checks (in total) #310 $15 #312 $73 #311 #313 86 #312 73 #314 281 #313 #315 46 #316 421 #316 421 #317 194 #317 194 #318 71 #318 #319 129 #319 129 Bank Draft 260 (see #3 below) #320 43 35 86 71 2,465 Deposits Received in October (in total) 2,289 10/01 $320 10/09 539 10/18 647 10/24 783 October Deposits (in total) 10/07 $539 10/15 674 10/23 783 10/31 469 Additional Information on the bank statement October Service Charge $15 October NSF Customer Check 83 October Note Collected by bank 840 (including $40 of interest on the note) A. Prepare a bank reconciliation for Wells Company on October 31 using the following assumptions: (18 points) 1. The September (last month) reconciliation was completed properly showing two outstanding checks and one deposit in transit. 2. Any errors in the amounts were made on the books and involved the collection of rent for October. 3. The bank draft listed on the bank statement was for the company's utility bills which Wells has authorized to be automatically deducted each month from their bank account. B. Prepare ALL NECESSARY ENTRIES according to the October 31 bank recon- ciliation. (Do not forget this part - even if your bank reconciliation does not balance !!) (7 points)
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