Prepare a bank reconciliation at the end of October showing the true cash balance.

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.

Required

Prepare a bank reconciliation at the end of October showing the true cash balance.

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