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On October 31, 2017, Lisik Company had a cash balance per books of $8,946

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On October 31, 2017, Lisik Company had a cash balance per books of $8,946. The bank statement on that date showed a balance of $10,155. A comparison of the statement with the Cash account revealed the following:

 

1.The statement included debit memos of $35 for the printing of additional company cheques and $30 for bank service charges.

 

2.Cash sales of $417 on October 12 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by Lisik as $741. The bank detected the error on the deposit slip and credited Lisik Company for the correct amount.

 

3.The September 30 deposit of $985 was included on the October bankstatement. The deposit had been placed in the bank's night deposit vault on September 30.

 

4.The October 31 deposit of $960 was not included on the October bank statement. The deposit had been placed in the bank's night deposit vault on October 31.

 

5.Cheques #1006 for $415 and #1072 for $975 were outstanding on September 30. Of these, #1072 cleared the bank in October. All the cheques written in October except for #1278 for $555, #1284 for $646, and #1285 for $315 had cleared the bank by October 31.

 

6.On October 18, the company issued cheque #1181 for $457 to Helms & Co., on account. The cheque, which cleared the bank in October, was incorrectly journalized and posted by Lisik Company for $574.

 

7.A review of the bank statement revealed that Lisik Company receivedelectronic payments from customers on account of $1,875 in October. Thebank had also credited the account with $25 of interest revenue on October 31. Lisik had no previous notice of these amounts.

 

8.Included with the cancelled cheques was a cheque issued by Lasik Company for $585 that was incorrectly charged to Lisik Company by the bank.

 

9.On October 31, the bank statement showed an NSF charge of $805 for a cheque issued by W. Hoad, a customer, to Lisik Company on account. This amount included a $16 service charge by the bank. The company's policy is to pass on all NSF fees to the customer.

 

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