Elfen Company has just received the October 31, 2014, bank statement, which is summarized below.

The general ledger Cash account contained the following entries for the month of October.

Deposits in transit at October 31 are $4,800, and checks outstanding at October 31 total $1,550. Cash on hand at October 31 is $250. The bookkeeper improperly entered one check in the books at $210.00 which was written for $180.00 for supplies (expense); it cleared the bank during the month of October.

Instructions
(a) Prepare a bank reconciliation dated October 31, 2014, proceeding to a correct balance.
(b) Prepare any entries necessary to make the books correct and complete.
(c) What amount of cash should be reported in the October 31 balancesheet?

Transcribed Image Text:

Tri National Bank Balance, October1 Deposits during October Note collected for depositor, including $40 interest Checks cleared during October Bank service charges Balance, October 31 Disbursements Receipts Balance $21,361 $47,200 68,561 2,040 70,601 16,100 16,090 16,090 $54,501 10 Cash Balance, October 1 Receipts during October 17,801 Disbursements in October 45,271 45,000