The following information was available to reconcile MontroseCompany’s book balance of Cash with its bank statement balance asof October 31, 2017:
| a. | After all posting was completed on October 31, the company’sCash account had a $17,673 debit balance, but its bank statementshowed a $39,247 balance. |
| b. | Cheques #296 for $1,784 and #307 for $17,056 were outstanding onthe September 30 bank reconciliation. Cheque #307 was returned withthe October cancelled cheques, but cheque #296 was not. It was alsofound that cheque #315 for $1,194 and cheque #321 for $2,675, bothwritten in October, were not among the cancelled cheques returnedwith the statement. |
| c. | In comparing the cancelled cheques returned by the bank with theentries in the accounting records, it was found that cheque #320for the October rent was correctly written for $5,080 but waserroneously entered in the accounting records as $5,800. |
| d. | A credit memo enclosed with the bank statement indicated thatthere was an electronic fund transfer related to a customer paymentfor $22,900. A $160 bank service charge was deducted. Thistransaction was not recorded by Montrose before receiving the bankstatement. |
| e. | A debit memo for $4,335 listed a $4,269 NSF cheque plus a $66NSF charge. The cheque had been received from a customer, JeffersonTyler. Montrose had not recorded this bounced cheque beforereceiving the statement. |
| f. | Also enclosed with the statement was a $99 debit memo for bankservices. It had not been recorded because no previous notificationhad been received. |
| g. | The October 31 cash receipts, $3,105, were placed in the bank’snight depository after banking hours on that date and this amountdid not appear on the bank statement. |
Required:
1. Prepare a bank reconciliation for the company as ofOctober 31, 2017.
2. Prepare the General Journal entriesnecessary to bring the company’s book balance of Cash intoagreement with the reconciled balance. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)
1
Record the collection of note less collection fee.
2
Record the NSF cheque.
3
Record the bank service charges.
4
Record to correct error in Cheque #320.
