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On October 31 Windsor Ltd. received its bank statement from Provincial Bank. It stated that Windsor had a balance of $9,480 at October 31. The
On October 31 Windsor Ltd. received its bank statement from Provincial Bank. It stated that Windsor had a balance of $9,480 at October 31. The companys general ledger showed a cash balance of $10,205 at that date. A comparison of the bank statement and the accounting records revealed the following information:
Bank service charges for the month were $50. | ||
The company had written and mailed out cheques with a value of $1,380 that had not yet cleared the bank. | ||
A cheque from one of Windsors 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 $255 for monthly insurance expense was automatically deducted from Windsors bank account on October 22. Windsors bookkeeper had forgotten to record this transaction. | ||
During the month, the companys bookkeeper had recorded a cheque (#1872) paid for utilities as $575 rather than $755 (which was the amount written on the cheque and processed by the bank). | ||
The cash receipts for October 31 amounted to $780 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 Windsor at October 31.
Bank Reconciliation October 31 | |||||
Deposits in transitBalance per bank statementBank service chargesError correction on cheque #1872NSF chequeOutstanding chequesEFT paymentAdjusted cash balance per bank | $ | ||||
LessAdd: Bank service chargesEFT paymentOutstanding chequesAdjusted cash balance per bankDeposits in transitNSF chequeError correction on cheque #1872Balance per bank statement | |||||
LessAdd: Bank service chargesAdjusted cash balance per bankError correction on cheque #1872EFT paymentDeposits in transitNSF chequeOutstanding chequesBalance per bank statement | |||||
Deposits in transitBalance per bank statementNSF chequeOutstanding chequesAdjusted cash balance per bankBank service chargesError correction on cheque #1872EFT payment | $ | ||||
Adjusted cash balance per booksNSF chequeBank service chargesEFT paymentBalance per accounting recordsDeposits in transitError correction on cheque #1872Outstanding cheques | $ | ||||
AddLess: | |||||
Deposits in transitError correction on cheque #1872NSF chequeOutstanding chequesBank service chargesAdjusted cash balance per booksEFT paymentBalance per accounting records | $ | ||||
Adjusted cash balance per booksEFT paymentBank service chargesBalance per accounting recordsError correction on cheque #1872NSF chequeDeposits in transitOutstanding cheques | |||||
Balance per accounting recordsOutstanding chequesAdjusted cash balance per booksDeposits in transitEFT paymentError correction on cheque #1872Bank service chargesNSF cheque | |||||
Deposits in transitBank service chargesNSF chequeBalance per accounting recordsOutstanding chequesEFT paymentError correction on cheque #1872Adjusted cash balance per books | |||||
EFT paymentBalance per accounting recordsBank service chargesNSF chequeDeposits in transitAdjusted cash balance per booksOutstanding chequesError correction on cheque #1872 | $ |
What cash should Windsor report on its Balance Sheet as at October 31?
The cash reported on the Balance Sheet at October 31 | $ |
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