The cash data of Duff y Automotive for October 2012 follow:

Duff y received the following bank statement on October 31, 2012:

Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance expense.
b. The unauthorized signature check was received from a customer.
c. The correct amount of check number 3115, a payment on account, is $1,390. (Duffy€™s accountant mistakenly recorded the check for $1,930.)

Requirements
1. Prepare the Duff y Automotive bank reconciliation at October 31, 2012.
2. Describe how a bank account and the bank reconciliation help the general manager control Duffy€™scash.

Transcribed Image Text:

Cash Account No. 101 Debit Credit Date Oct 1 31 Jml. Ref. 5 Balance 7,750 16,980 6,675 Balance CR 6 CP 11 9.230 10,305 Cash Receipts (CR) Cash Payments (CP) Date Cash Debit Check No. Cash Credit Oct 2 Total $9,230 Bank Statement for October 2012 Beginning balance Deposits and other additions: S 7,750 $ 750 2,787 586 1,695 845 413 Oct 1 12 1,350 BC8,426 Checks and other deductions: $1,506 1,390 13 417 US 15 18 95 312 E 819 174 2.5 SCII (6,576) 9,600 Ending balan