Diamond Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for October 2013 indicated the following:
$\begin{array}{ll}
\text { Balance, October 31, 2013 } &\$ 29,700 \
\text { Bank service charges for October } &80 \
\text { Interest earned duwing October } &120 \
\text { NSF Check from a customer which had been previously deposited by Diamond } &230\
\text { Collection of note (\$ 4,000) and the related } &\
\text { interest (\$ 100) from Diamond's customer } &4.100
\end{array}$ An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
$\begin{array}{ll}
\text { Checking account balance per Diamond's accounting records} &\$ 26,040 \
\text { Outstanding checks as of October 31 } &2,950 \
\text { Deposits in transit on October 31 } &3,110 \
\text { Error in recording check \#627 issued by Diamond } &90
\end{array}$ The correct amount of check # 627 is $980,but it was recorded as a cash disbursement of $890.The check was issued to pay for merchandise purchased.The check was written correctly and appeared on the bank statement correctly.
A) Prepare a bank reconcliation in proper form for October $ 31,2013 $.

Question

Diamond Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for October 2013 indicated the following:
 $\begin{array}{ll}
\text { Balance, October 31, 2013 } &\$ 29,700 \
\text { Bank service charges for October } &80 \
\text { Interest earned duwing October } &120 \
\text { NSF Check from a customer which had been previously deposited by Diamond } &230\
\text { Collection of note (\$ 4,000) and the related } &\
\text { interest  (\$ 100) from Diamond's customer } &4.100
\end{array}$ An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
 $\begin{array}{ll}
\text { Checking account balance per Diamond's  accounting records} &\$ 26,040 \
\text { Outstanding checks as of October 31 } &2,950 \
\text { Deposits in transit on October 31 } &3,110 \
\text { Error in recording check \#627 issued by Diamond } &90
\end{array}$ The correct amount of check # 627 is $980,but it was recorded as a cash disbursement of $890.The check was issued to pay for merchandise purchased.The check was written correctly and appeared on the bank statement correctly.
 A) Prepare a bank reconcliation in proper form for October $ 31,2013 $.

Quizplus · Accepted Answer

The Answer of Diamond Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for October 2013 indicated the following:
 $\begin{array}{ll}
\text { Balance, October 31, 2013 } &\$ 29,700 \
\text { Bank service charges for October } &80 \
\text { Interest earned duwing October } &120 \
\text { NSF Check from a customer which had been previously deposited by Diamond } &230\
\text { Collection of note (\$ 4,000) and the related } &\
\text { interest  (\$ 100) from Diamond's customer } &4.100
\end{array}$ An analysis of canceled checks and deposits and the records of Diamond revealed the following items:
 $\begin{array}{ll}
\text { Checking account balance per Diamond's  accounting records} &\$ 26,040 \
\text { Outstanding checks as of October 31 } &2,950 \
\text { Deposits in transit on October 31 } &3,110 \
\text { Error in recording check \#627 issued by Diamond } &90
\end{array}$ The correct amount of check # 627 is $980,but it was recorded as a cash disbursement of $890.The check was issued to pay for merchandise purchased.The check was written correctly and appeared on the bank statement correctly.
 A) Prepare a bank reconcliation in proper form for October $ 31,2013 $.

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