The following Information was avallable to reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2020: a. After all posting was completed on October 31, the company's Cash account had a $13,219 debit balance but its bank statement showed a $29,355 balance. b. Cheques #296 for $1,334 and #307 for $12,754 were outstanding on the September 30 bank reconcillation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written In October, were not among the cancelled cheques returned with the statement. c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, It was found that cheque #320 for the October rent was correctly written for $4.090 but was erroneously entered in the accounting records as $4,90o. 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 recelving the bank statement. e. A debit memo for $3,251 listed a $3,202 NSF cheque plus a $49 NSF charge. The cheque had been recelved from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before recelving the statement. 1. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been recelved. g. The October 31 cash receipts, $6,856, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the bank statement. Requlred: 1. Prepare a bank reconciliation for the company as of October 31, 2020. MONTROSE COMPANY Bank Reconciliation October 31, 2020 Bank Statement Company's Books
The following Information was avallable to reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2020: a. After all posting was completed on October 31, the company's Cash account had a $13,219 debit balance but its bank statement showed a $29,355 balance. b. Cheques #296 for $1,334 and #307 for $12,754 were outstanding on the September 30 bank reconcillation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written In October, were not among the cancelled cheques returned with the statement. c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, It was found that cheque #320 for the October rent was correctly written for $4.090 but was erroneously entered in the accounting records as $4,90o. 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 recelving the bank statement. e. A debit memo for $3,251 listed a $3,202 NSF cheque plus a $49 NSF charge. The cheque had been recelved from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before recelving the statement. 1. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been recelved. g. The October 31 cash receipts, $6,856, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the bank statement. Requlred: 1. Prepare a bank reconciliation for the company as of October 31, 2020. MONTROSE COMPANY Bank Reconciliation October 31, 2020 Bank Statement Company's Books
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following Information was avallable to reconcile Montrose Company's book balance of Cash with Its bank statement balance as of
October 31, 2020:
a. After all posting was completed on October 31, the company's Cash account had a $13,219 debit balance but its bank statement
showed a $29,355 balance.
b. Cheques #296 for $1,334 and #307 for $12,754 were outstandıng on the September 30 bank reconcilliation. Cheque #307 was
returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque
#321 for $2,000, both written in October, were not among the cancelled cheques returned with the statement.
c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, It was found that cheque #320
for the October rent was correctly written for $4,090 but was erroneously entered in the accounting records as $4,90o.
d. A credit memo enciosed 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 recelving
the bank statement.
e. A debit memo for $3,251 listed a $3,202 NSF cheque plus a $49 NSF charge. The cheque had been recelved from a customer,
Jefferson Tyler. Montrose had not recorded this bounced cheque before recelving the statement.
1. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous
notification had been recelved.
g. The October 31 cash recelpts, $6,856, were placed in the bank's night depository after bankıng hours on that date and this amount
did not appear on the bank statement.
Requlred:
1. Prepare a bank reconciliation for the company as of October 31, 2020.
MONTROSE COMPANY
Bank Reconciliation
October 31, 2020
Bank Statement
Company's Books
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