Textbook Problem

OBJECTNE

The items on the bank statement are correct. The debit memo is for the payment by the bank of

The cash records of Donald Corporation provide the following informaLion:

Problem 4-593 Bank Reconciliation

Donald Corporaiion received the bank statement shown below for the month of October:

Date Checks Deposits Balance

9130 Beg. balance 35 5.205

1012 $1,200 $2,950 6.955

1014 50 300 6.605

10.18 900 5.?05

10110 100 60 $35 5.510

1011 3 4,000 9 .5 10

10114 300* 9 .2 10

10.117 525 325 8.360

10119 105 430 20 2,850 10.655

10121 3,110 1.545

10123 65 1.480

10125 250” 110 1.120

10127 90 7.030

10131 25* “ 1.305 5.100

‘NSF check

“Debit mama (Rent Expense)

&*#x201C;Sandrine charge

Date Item Debit Credit Balance

1011 Balance from 9130 $ 6.905

1012 Check #1908 $ 300 6.605

1015 Check #1909 900 5.705

1016 Check #1910 100 5.605

1016 Check #1911 60 5.545

1011 Check #1912 35 5.510

10112 Deposit #411 $4.000 9.510

10115 Check #1913 525 8.985

10116 Check #1914 325 8.660

10111 Check #1915 430 8.230

10111 Check #1916 20 8.210

10118 Deposit#412 2.850 11,060

10118 Check #1911 105 10,955

10120 Check #1918 65 10,890

10120 Check #1919 3.110 T380

10123 Check #1920 110 7.670

10125 Check #1921 90 T580

10129 Check #1922 1.350 6.230

10130 Check #1923 250 5.980

10131 Check #1924 650 5.330

10131 Deposit #413 3.300 8.630

Donald’s office furniture rent expense for October.

Required:

1. Prepare a bank reconciliation. (Him: There is one transposition error in the cash account.)

2. Prepare adjusting entries based on the bank reconciliation.

3. What amount is reported for cash in bank on the balance sheet at October 31‘?