Reference no: EM132962782

On October 31, 2021, Sandhill Company had a cash balance per books of $8,967. The bank statement on that date showed a balance of $10,159. A comparison of the statement with the Cash account revealed the following:

1. The statement included debit memos of $39 for the printing of additional company cheques and $34 for bank service charges.
2. Cash sales of $528 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 Sandhill as $852. The bank detected the error on the deposit slip and credited Sandhill Company for the correct amount.
3. The September 30 deposit of $989 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 $964 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 $419 and #1072 for $979 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $549, #1284 for $639, and #1285 for $319 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 Sandhill Company for $574.
7. A review of the bank statement revealed that Sandhill Company received electronic payments from customers on account of $1,879 in October. The bank had also credited the account with $29 of interest revenue on October 31. Sandhill had no previous notice of these amounts.
8. Included with the cancelled cheques was a cheque issued by Lasik Company for $589 that was incorrectly charged to Sandhill Company by the bank.
9. On October 31, the bank statement showed an NSF charge of $809 for a cheque issued by W. Hoad, a customer, to Sandhill Company on account. This amount included a $20 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.)