Reference no: EM133060050

Question - On October 31, 2021, Cullumber Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,163. A comparison of the statement with the Cash account revealed the following:

1. The statement included debit memos of $43 for the printing of additional company cheques and $38 for bank service charges.

2. Cash sales of $639 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 Cullumber as $963. The bank detected the error on the deposit slip and credited Cullumber Company for the correct amount.

3. The September 30 deposit of $993 was included on the October bank statement. The deposit had been placed in the bank's night deposit vault on September 30.

4. The October 31 deposit of $968 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31.

5. Cheques #1006 for $423 and #1072 for $983 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $553, #1284 for $643, and #1285 for $323 had cleared the bank by October 31.

6. 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 Cullumber Company for $574.

7. A review of the bank statement revealed that Cullumber Company received electronic payments from customers on account of $1,883 in October. The bank had also credited the account with $33 of interest revenue on October 31. Cullumber had no previous notice of these amounts.

8. Included with the cancelled cheques was a cheque issued by Lasik Company for $593 that was incorrectly charged to Cullumber Company by the bank.

9. On October 31, the bank statement showed an NSF charge of $813 for a cheque issued by W. Hoad, a customer, to Cullumber Company on account. This amount included a $24 service charge by the bank. The company's policy is to pass on all NSF fees to the customer.

Required - Prepare the bank reconciliation at October 31.