The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:

Balance, October 1, 2016	$	32,590
Deposits		81,000
Checks processed		(70,200)
Service charges		(250)
NSF checks		(1,500)
Monthly loan payment deducted
directly by bank from account
(includes $300 in interest)		(2,300)
Balance, October 31, 2016	$	39,340

The companys general ledger cash (checking) account had a balance of $42,354 at the end of October. Deposits outstanding totaled $4,124, and all checks written by the company were processed by the bank except for those totaling $5,520. In addition, a check for $400 for the purchase of office furniture was incorrectly recorded by the company as a $40 disbursement. The bank correctly processed the check during October.

Required:

1.

Prepare a bank reconciliation for the month of October.

2.	Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.

2.

Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.