The following information was available to reconcile Montros

The following information was available to reconcile Montrose Company\'s book balance of Cash with its bank statement balance as of October 31, 2017: a. After all posting was completed on October 31, the company\'s Cash account had a $13,219 debit b. Cheques #296 for $1,334 and #307 for S 12,754 were outstanding on the September 30 bank balance, but its bank statement showed a $29.355 balance reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found tnat cheque #315 for S893 and cheque #321 for S2.000, both written in October were not among the cancelled cheques returned with the statement. c. In comparing the cancelled cheques returmed by the bank wit the entries in the accounting records , it was found that cheque #320 for the October rent was correctly written for S4,0g0 but was erroneously entered in the accounting records as $4,900 d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $21.400. A $120 bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement. e. A debit memo for $3,251 listed a S3,202 NSF cheque plus a $49 NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been received f. g. The October 31 cash receipts, S6,856, were placed in the bank\'s night depository after banking hours on that date and this amount did not appear on the bank statement.

Solution

Montrose Company Bank Reconciliation October 31, 2017 Bank Statement Company\'s Books Bank Statement Balance 29355 Book Balance of Cash 13219 Add: Add: Plus deposit in transit 6856 Note receivable collected 21400 Less outstanding checks Collection fee for note receivable -120 21280 296 1334 315 893 NSF check charge back 3202 321 2000 4227 NSF charge 49 -3251 Bank service charge -74 Cheque wrongly recorded 4900-4090 810 Adjusted bank balance 31984 Adjusted book balance 31984 Date General Journal Debit Credit 31-Oct Cash 21520 Bank Charges 120 Notes Receivables 21400 To record collection of note receivable less collection fee 31-Oct Accounts receivable 3251 Cash 3251 31-Oct Bank charges 74 Cash 74 To record bank service charge 31-Oct Rent expense 810 Cash 810