Preparing a bank reconciliation
Tom Landry owns a construction business, Landry Supply Co. The following cash information is available for the month of October 2012.
As of October 31, the bank statement shows a balance of $13,800. The October 31 unadjusted
balance in the Cash account of Landry Supply Co. is $12,700. A review of the bank statement revealed the following information.
1. A deposit of $1,600 on October 31, 2012, does not appear on the October 31 bank statement.
2. A debit memo for $250 was included in the bank statement for the purchase of a new supply of checks.
3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,450 were found to be outstanding.
4. It was discovered that a check to pay for repairs was correctly written and paid by the bank for $3,100 but was recorded on the books as $1,600.
Prepare a bank reconciliation at the end of October showing the true cash balance.