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On October 31 Sage Hill Ltd. received its bank statement from Provincial Bank. It stated that Sage Hill had a balance of 59.140 st October

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On October 31 Sage Hill Ltd. received its bank statement from Provincial Bank. It stated that Sage Hill had a balance of 59.140 st October 31. The company's general ledger showed a cash balance of $9.625 at that date. A comparison of the bank statement and the accounting records revealed the following information . . . Bank service charges for the month were $40. The company had written and malled out theques with a value of $1520 that had not yet cleared the bank A cheque from one of Sage Hill's customers in the amount of $840 that had been deposited during the last week of October was returned with the bank statement as NSF. An electronic funds transfer payment (EFT) of S235 for monthly insurance expense was automatically deducted from Hill's bank account on October 22. Sae Hill's bookkeeper had forgotten to record this transaction During the month, the company's bookkeeper had recorded a cheque (1872) taid for itsties 5575 rather than 5755 (which was the amount written on the cheque and processed by the bank). The cash receipts for October 31 amounted to 5720 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October . Prepare the bank reconciliation for Sage Hill at October 31 3 DanK RECONCILIO October 31 Balance per bank statement $ 9140 Add V: Deposits in transit 720 Less : Outstanding cheques 1520 Adjusted cash balance per bank V $ 8340 Balance per accounting records Less Error correction on cheque #1872 NSF cheque EFT payment Bank service charges Bank service charges Adjusted cash balance per books What cash should Sage Hill report on its Balance Sheet as at October 312 S The cash reported on the Balance Sheet at October 31 Prepare the journal entries necessary as a result of the bank reconciliation. (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.) Account Titles and Explanation Debit Credit (To record bank charges) (To record NSF cheque) (To record EFT) (To record NSF cheque) (To record EFT) (To correct error in Cheque #1872)

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