The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31,095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $10,125. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. A check drawn for $320 had been incorrectly charged by the bank as $230. Bank service charges for October amounted to $70.

Deaver Consulting Bank Reconciliation October 31, 20 Y6 Cash balance according to bank statement Add: Deposit of October 31 , not recorded by bank Deduct: Outstanding checks Deduct: Bank error in charqing check as $230 instead of $320 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest V Deduct: Frror in recording check by the company as $120 instead of 51.200 : Deduct: Bank service charges Adjusted balance Decrease in Cash