You are a student intern at Island Milling Ltd. The bookkeeper has gathered all of the information necessary to complete Island Milling's bank reconciliation for October. She has asked you to complete it for her. Island Milling's general ledger showed a cash balance of $14,565 at October 31. The company's bank statement for the month of October showed that the company had a cash balance of $17,230 as at October 31. A comparison of the bank statement and the accounting records revealed the following information:
1. Bank service and credit card charges for the month were $65.
2. The cash receipts for October 31 amounted to $3,600 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October.
3. During the last week of the month, one of Island Milling's customers made an electronic payment directly to Island Milling's bank in the amount of $2,650. Because the customer had not notified Island Milling of the payment, the company was unaware of it until it received the bank statement for October.
4. Island Milling had written and mailed out cheques with a value of $6,200 that had not yet cleared the bank account.
5. A cheque for $2,610 from one of Island Milling's customers that had been deposited during the last week of October was returned with the bank statement as "NSF."
6. Cheque #1926, which was a payment for legal fees, had been correctly written for $3,670 but had been incorrectly recorded in the general ledger as $3,760.
Instructions
(a) Prepare the bank reconciliation at October 31.
(b) Prepare any journal entries required from the reconciliation.