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Point 1: The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:
Point 2: The company's general ledger cash (checking) account had a balance of $42.620 at the end of October. Deposits outstanding totaled $4.264, and all checks written by the company were processed by the bank except for those totaling $5.660. In addition, a check for $540 for the purchase of office furniture was Incorrectly recorded by the company as a $54 disbursement. The bank correctly processed the check during October.
Balance, October 1, 2016 $ 32,730Deposits 88,000Checks processed (77,200)Service charges (390)NSF checks (1.640)Monthly loan payment deducteddirectly by bank from account(Includes $440 In Interest) (3.840)Balance. October 31, 2016 $ 37,660Required:
Question 1. Prepare a bank reconciliation for the month of October.
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