Reference no: EM132948996

On October 31, 2021, Sheridan Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,167. A comparison of the statement with the Cash account revealed the following:

• The statement included debit memos of $47 for the printing of additional company cheques and $42 for bank service charges.
• Cash sales of $417 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Sheridan as $741. The bank detected the error on the deposit slip and credited Sheridan Company for the correct amount.
• The September 30 deposit of $997 was included on the October bank statement. The deposit had been placed in the bank's night deposit vault on September 30.
• The October 31 deposit of $972 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31.
• Cheques #1006 for $427 and #1072 for $987 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $557, #1284 for $647, and #1285 for $327 had cleared the bank by October 31.
• On October 18, the company issued cheque #1181 for $457 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Sheridan Company for $574.
• A review of the bank statement revealed that Sheridan Company received electronic payments from customers on account of $1,887 in October. The bank had also credited the account with $37 of interest revenue on October 31. Sheridan had no previous notice of these amounts.
• Included with the cancelled cheques was a cheque issued by Lasik Company for $597 that was incorrectly charged to Sheridan Company by the bank.
• On October 31, the bank statement showed an NSF charge of $817 for a cheque issued by W. Hoad, a customer, to Sheridan Company on account. This amount included a $28 service charge by the bank. The company's policy is to pass on all NSF fees to the customer.

Problem 1: Prepare the bank reconciliation at October 31. (List items that increase balance as per bank & books first.)