Sarcon Corp An Analysis of Canceled Checks and Deposits and the Records

Sarcon Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for October,2017,indicated the following:

$$\begin{array} { l r } \text { Balance, October } 31,2017 & \$ 7,920 \\\text { Service charge for October } & 20 \\\text { Interest earned during October } & 30 \\\text { NSF check from Grey Corp. (deposited by Sarcon) } & 32 \\\text { Note } ( \$ 1,000 ) \text { and inter est } ( \$ 40 ) \text { collected for Sarcon from a customer } & 1,040\end{array}$$ An analysis of canceled checks and deposits and the records of Sarcon revealed the following items:

$$\begin{array} { l r } \text { Checking account bal ance per Sarcon books } & \$ 7,170 \\\text { Outstanding checks as of October } 31 & 952 \\\text { Deposit in transit at October } 31 & 1,310 \\\text { Error in recording check \#313 issued by Sarcon. } & 90\end{array}$$ The correct amount of check #313 is $450,but it was recorded as a cash disbursement of $540.The check was issued to pay for merchandise purposes.The check appeared on the bank statement correctly.

Required
Prepare a bank reconciliation at October 31,2017 in proper form.