Problem 4-50B Bank Reconciliation Donald Corporation received the bank statement shown below for the month of October: Date Checks Deposits 9/30 10/2 Beg, balance Balance $ 5,205 $1,200 $2,950 6,955 10/4 50 $ 300 6,605 10/8 900 5,705 10/10 100 60 $35 5,510 10/13 4,000 9,510 10/14 300* 9,210 10/17 525 325 8,360 10/19 105 430 20 2,850 10,655 10/21 3,110 7,545 10/23 65 7,480 10/25 250** 110 7,120 10/27 90 7,030 10/31 25*** 1,305 5,700 *NSF check "Debit memo (Rent Expense) ***Service charge The cash records of Donald Corporation provide the following information: Date Item Debit Credit Balance 10/1 Balance from 9/30 $ 6,905 10/2 Check #1908 $ 300 6,605 10/5 Check #1909 900 5,705 10/6 Check #1910 100 5,605 10/6 Check #1911 60 5,545 10/7 Check #1912 35 5,510 10/12 Deposit #411 $4,000 9,510 10/15 Check #1913 525 8,985 10/16 Check #1914 325 8,660 10/17 Check #1915 430 8,230 10/17 Check #1916 20 8,210 10/18 Deposit #412 2,850 11,060 10/18 Check #1917 105 10,955 10/20 Check #1918 65 10,890 10/20 Check #1919 3,110 7,780 10/23 Check #1920 110 7,670 10/25 Check #1921 90 7,580 10/29 Check #1922 1,350 6,230 10/30 Check #1923 250 5,980 10/31 Check #1924 650 5,330 10/31 Deposit #413 3,300 8,630 The items on the bank statement are correct. The debit memo is for the payment by the bank of Donald's office furniture rent expense for October. Required: 1. Prepare a bank reconciliation. (Hint: There is one transposition error in the cash account.) 2. Prepare adjusting entries based on the bank reconciliation. 3. What amount is reported for cash in bank on the balance sheet at October 31?