Arman has just been hired as the bookkeeper for Smart Drive Co. His first responsibility is to reconcile the bank account for July 31, 2015. Arman gathered all the necessary documents and has discovered the following information.
The bank statement had an ending balance at July 31 of $22,497. The bank had col lected on a note on behalf of the company. The total collection was $2,250, including $250 of interest. The previous bookkeeper had recorded total deposits to cash during July of $56,930, and total payments from cash during July of $44,750. The reconciled cash balance on June 30, 2015, was $15,858. An NSF cheque for $1,700, written by P. Grenier in payment of its account, was returned with the July bank statement. July service charges were $52. Cheque No. 1225 had been recorded by the previous book keeper as $6,700, but it was correctly cashed by the bank as $7,600. Cheque No. 1225 was written to the utility company for July utilities. Three cheques written in July had not yet cleared the bank account, totalling $2,638. Cheque No. 1243 had been incorrectly cashed by the bank for $2,000, but it had actually been written for $5,000. A deposit of $5,246, made after banking hours on July 31, did not appear on the bank statement.
Included with the bank statement were two EFT transactions: one for a $256 payment to a supplier, Office Supply Co., on account, and one for a $725 deposit from a customer, Bob's Grill Co., on account.