Reference no: EM132475347

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                       $ 32,730
Deposits                                              88,000
Checks processed                                (77,200)
Service charges                                     (390)
NSF checks                                          (1.640)
Monthly loan payment deducted
directly by bank from account
(Includes $440 In Interest)                     (3.840)
Balance. October 31, 2016                      $ 37,660

Required:

Question 1. Prepare a bank reconciliation for the month of October.