Enabled: Midterm 2 - (Ch 5, 6, 7) F23 i

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8

Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2023, after all posting was completed, its Cash account showed a $10,913 debit balance. However, Keser's July 31 bank statement showed only $10,052 on deposit in the bank on that day along with the following information

15

points

8 00:10-17

1. Outstanding cheques, $2,750.
2. Included with the July cancelled cheques returned by the bank was a $24 debit memo for bank services.
3. Cheque #919, returned with the cancelled cheques, was correctly drawn for $896 in payment of the utility bill and was paid by the bank on July 15. However, it had been recorded with a debit to Utilities Expense and a credit to Cash as though it were for $986
4. The July 31 cash receipts, $3,677, were placed in the bank's night depository after banking hours on that date and were unrecorded by the bank at the time the July bank statement was prepared.

Required:

a. Prepare a bank reconciliation for Kesler Co. at July 31.

KESLER CO.

Bank Reconciliation