Diamond Corp An Analysis of Cancelled Cheques and Deposits and the Records

Diamond Corp.prepares monthly bank reconciliations of its chequing account balance.The bank statement for October Year 1 indicated the following:
$\begin{array}{llr} \text { Balance, October 31 , Year 1 } &\$29,700\\ \text {Bank service charges for October } &80\\ \text { Interest earned during October } &120\\ \text { NSF cheque from a customer which had been previously deposited by Diamond} &230\\ \text { Collection of note \( (\$ 4,000) \) and the related interest \( (\$ 100) \) from Diamond's } &\\ \text { customer } &4,100\\\end{array}$

An analysis of cancelled cheques and deposits and the records of Diamond revealed the following items:
$\begin{array}{llr} \text { Chequing account balance per Diamond's accounting records } &\$26,040\\ \text { Outstanding cheques as of October 31 } &2,950\\ \text { Deposits in transit on October 31} &3,110\\ \text { Error in recording cheque \# 627 issued by Diamond} &90\\\end{array}$

The correct amount of cheque # 627 is $980,but it was recorded as a cash disbursement of $890.The cheque was issued to pay for merchandise purchased.The cheque was written correctly and appeared on the bank statement correctly.
A) Prepare a bank reconciliation in proper form for October 31. Year 1.

B) What amount would Diamand report as its cash balance on its October 31, Year 1, balance sheet?