Reference no: EM133093068

Question - Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2020, after all posting was completed, its Cash account showed a $10,911 debit balance. However, Kesler's July 31 bank statement showed only $10,041 on deposit in the bank on that day along with the following information.

a. Outstanding cheques, $2,747.

b. Included with the July cancelled cheques returned by the bank was a $26 debit memo for bank services.

c. Cheque #919, returned with the cancelled cheques, was correctly drawn for $675 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 $765.

d. The July 31 cash receipts, $3,681, 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 - Prepare a bank reconciliation for Kesler Co. at July 31.