EXERCISE ONE: Bank Reconciliation Example

Try completing a bank reconciliation for Cartwright Corp. using the information below. The reconciliation form

is on the next page. The solution is on the page following the form. Try not to look at the solution first!

Following is a list of checks and deposits recorded on Cartwright's books:

Other Information:

The cash balance showing on Cartwright's books as of October $31$ st is $$9,868.$

Check number #$565$ was correctly written and recorded by the bank for $$405,$ however,

it was recorded on Cartwright's books for $$450.$ The check was to pay utilities expense.

The Debit Memo $($DM$)$ was for bank service charges. Cartwright records service

charges to the Miscellaneious Expense account.

A check previously deposited by Cartwright was returned $($DM$)$ for NSF$-$ $$135$

The check was from Steve Smith in payment of his account.

The Credit Memo $($CM$)$ was for the collection of an accounts receivable balance from

one of Cartwright's customers.