Question

On October 31, 2021, Cullumber Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,174. A comparison of the statement with the Cash account revealed the following:

1.		The statement included debit memos of $54 for the printing of additional company cheques and $49 for bank service charges.
2.		Cash sales of $528 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Cullumber as $852. The bank detected the error on the deposit slip and credited Cullumber Company for the correct amount.
3.		The September 30 deposit of $1,004 was included on the October bank statement. The deposit had been placed in the bank’s night deposit vault on September 30.
4.		The October 31 deposit of $979 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31.
5.		Cheques #1006 for $434 and #1072 for $994 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $564, #1284 for $654, and #1285 for $334 had cleared the bank by October 31.
6.		On October 18, the company issued cheque #1181 for $346 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Cullumber Company for $463.
7.		A review of the bank statement revealed that Cullumber Company received electronic payments from customers on account of $1,894 in October. The bank had also credited the account with $44 of interest revenue on October 31. Cullumber had no previous notice of these amounts.
8.		Included with the cancelled cheques was a cheque issued by Lasik Company for $604 that was incorrectly charged to Cullumber Company by the bank.
9.		On October 31, the bank statement showed an NSF charge of $824 for a cheque issued by W. Hoad, a customer, to Cullumber Company on account. This amount included a $35 service charge by the bank. The company's policy is to pass on all NSF fees to the customer. Question 1) Prepare the bank reconciliation at October 31 Question 2) Prepare the necessary adjusting entries at October 31.

Answer 1