Problem 6-1 Mitchell Company received a bank statement for the month of October 2019, which...
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Problem 6-1 Mitchell Company received a bank statement for the month of October 2019, which showed a balance per bank of $2,820. The company's Cash account in the general ledger showed a balance of $1,184 at October 31. Other information that may be relevant in preparing a bank reconciliation for October follows:
1. The bank returned an NSF check from a customer for $480.
2. The company recorded cash receipts of $340 on October 31 but this amount does not appear on the bank statement.
3. A check correctly written and paid by the bank for $1,740 was incorrectly recorded in the cash payments journal for $1,470. The check was a payment for advertising expense.
4. The bank included a credit memorandum for $1,526, which represents a collection of a customer's note by the bank for the company; principal amount of the note was $1,400 and the remainder was interest.
5. Checks written in October which have not been paid by the bank at October 31 amounted to $1,200.
Instructions Prepare a bank reconciliation for Mitchell Company for October which reconciles the balance per books and the balance per bank to their adjusted correct balances.
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