On December 31, 2024, 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: 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 December 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 November 30 deposit of $989 was included on the December bank statement. The deposit had been placed in the bank's night deposit vault on November 30. 4. The December 31 deposit of $964 was not included on the December bank statement. The deposit had been placed in the bank's night deposit vault on December 31. 5. Cheques #1006 for $419 and #1072 for $979 were outstanding on November 30. Of these, \#1072 cleared the bank in December. All the cheques written in December except for #1278 for $549, #1284 for $639, and #1285 for $319 had cleared the bank by December 31 . 6. On December 18 , the company issued cheque \#1181 for $457 to Tamarisk \& Co., on account. The cheque, which cleared the bank in December, 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 December. The bank had also credited the account with $29 of interest revenue on December 31 . Sandhill had no previous notice of these amounts. 8. Included with the cancelled cheques was a cheque issued by Indigo Company for $589 that was incorrectly charged to Sandhill Company by the bank. 9. On December 31, the bank statement showed an NSF charge of $809 for a cheque issued by W. Taylor, 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. Prepare the bank reconciliation at December 31. (List items that increase balance as per bank \& books first.) SANDHILL COMPANY Bank Reconciliation December 31,2024 Cash balance per bank statement $ 16 Error in Dec. 12 deposit of cash sales $528 Collection of EFT Less : O Outstanding cheques Adjusted cash balance per bank Collection of EFT $1879 Bankerror-Sandhill cheque $
