Current Attempt in Progress Weekly On October 31, 2021. Sandhill Company had a cash balance per books of $8.967. The bank statement on that date showed a balance of $10.159. A comparison of the statement with the Cash account revealed the following: upport 1. The statement included debit memos of $39 for the printing of additional company cheques and $34 for bank service charges. 2. Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Sandhill as $852. The bank detected the error on the deposit slip and credited Sandhill Company for the correct amount. 3. The September 30 deposit of $989 was included on the October bank statement. The deposit had been placed in the bank's night deposit vault on September 30. 4. The October 31 deposit of $964 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31. 5. Cheques #1006 for $419 and #1072 for $979 were outstanding on September 30. Of these #1072 cleared the bank in October. All the cheques written in October except for #1278 for $549. #1284 for $639, and #1285 for $319 had cleared the bank by October 31. 6. On October 18, the company issued cheque #1181 for $457 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Sandhill Company for $574 7. A review of the bank statement revealed that Sandhill Company received electronic payments from customers on account of $1.879 in October. The bank had also credited the account with $29 of interest revenue on October 31 Sandhill had no previous notice of these amounts. 8. Included with the cancelled cheques was a cheque issued by Lasik Company for $589 that was incorrectly charged to Sandhill Company by the bank 9. On October 31, the bank statement showed an NSF charge of $809 for a cheque issued by W. Hoad, a customer, to Sandhill Company on account. This amount included a $20 service charge by the bank. The company's policy is to pass on all NSF fees to the customer. Your answer is partially correct. Prepare the bank reconciliation at October 31. (List items that increase balance as per bank & books first.) SANDHILL COMPANY Bank Reconciliation October 31, 2021 20.159 Cash balance per bank statement Add - Your answer is partially correct. Prepare the necessary adjusting entries at October 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Oct. 31 Cash 2025 Accounts Payable 964 117 Accounts Receivable (To correct error in recording cheque issued and to record electronic receipt from customer & interest earned) Oct. 31 Accounts Receivable 809 Bank Charges Expense Interest Revenue Cash (To record NSF cheque & bank service charge expense and to rectify error in recording sales)
