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QUESTION 1- (BANK RECONCILIATION) Mr. Bradley is reviewing the cash accounting for Nemo Scuba Diving, Inc., a local retailer of scuba diving equipment. His review
QUESTION 1- (BANK RECONCILIATION) Mr. Bradley is reviewing the cash accounting for Nemo Scuba Diving, Inc., a local retailer of scuba diving equipment. His review will focus on the cash account for the month ended October 31, 2019. Nemo Scuba Diving, Inc. received the October 31, 2019 bank statement, which is summarized below: TRUST BANK BANK STATEMENT Disbursement Receipt Balance $10,920 Balance October 1, 2019 Deposits during October Note collected for the depositor (including interest of $50) Checks cleared during October Bank service charges Balance, October 31, 2019 $23,450 2,050 $28,485 125 7,810 Nemo Scuba Diving's Cash Account Balance, October 1, 2019 Deposits during October 2019 Checks written during October 2019 $11,020 26,470 (29,370) Deposits in transit at October 31 are determined to be $3,100, and checks outstanding at October 31 total $1,200. Cash on hand at October 31 is $290. The bookkeeper improperly entered one check in the books at $ 138.50 which was written for $ 183.50 for supplies (expense); it cleared the bank during the month of October. Required: Prepare a bank reconciliation dated October 31, 2019, proceeding to a correct cash balance
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