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When Sheridan Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $18,486 as
When Sheridan Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $18,486 as at October 31. Sheridans general ledger showed a cash balance of $20,380 at that date. A comparison of the bank statement and the accounting records revealed the following information:
1. | Bank service and credit card charges for the month were $7. | |
2. | A cheque, in the amount of $630, from one of Sheridans customers that had been deposited during the last week of October was returned with the bank statement as NSF. | |
3. | Cheque #3421, which was a payment for utilities expenses, had been correctly written for $860 but had been incorrectly recorded in the general ledger as $680. | |
4. | Sheridan had written and mailed out cheques with a value of $2,520 that had not yet cleared the bank account. | |
5. | During the month, the bank collected a $2,700 note receivable plus the outstanding interest of $243 on behalf of Sheridan. The interest had already been accrued. | |
6. | The cash receipts for October 31 amounted to $6,540 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.![]() ![]() |
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