Example 1 On July 31,2020 , after all posting was completed, its Cash account showed a $10,932 debit balance. However, Kesler's July 31 bank statement showed only $10,077 on deposit in the bank on that day along with the following information. 1. Outstanding cheques, $2,756. 2. Included with the July cancelled cheques returned by the bank was a $30 debit memo for bank services. 3. Cheque \#919, returned with the cancelled cheques, was correctly drawn for $236 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 $326. 4. The July 31 cash receipts, $3,671, 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