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Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October indicated the following: Balance, October 31 $29,700 Bank service

image text in transcribed Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October indicated the following: Balance, October 31 $29,700 Bank service charges for October 80 Interest earned during October 120 NSF Check from a customer which had been previously deposited by Diamond 230 Collection of note ($4,000) and the related interest ($100) from Diamond's customer 4,100 An analysis of cancelled checks and deposits and the records of Diamond revealed the following items: The correct amount of check \#627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly. A) Prepare a bank reconciliation in proper form for October. B) What amount would Diamond report its cash balance on its October 31, balance sheet

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