E7-25B (Bank Reconciliation and Adjusting Entries) Elfen Company has just received the October 31, 2014, bank statement, which is summarized below.

E7-25B (Bank Reconciliation and Adjusting Entries) Elfen Company has just received the October 31, 2014, bank statement, which is summarized below.

     Tri National Bank                                  Disbursements                 Receipts               Balance

Balance, October 1                                                                                                                $21,361

Deposits during October                                                                         $47,200                 68,561

Note collected for depositor, including $40 interest                               2,040                 70,601

Checks cleared during October                 $54,501                                                            16,100

Bank service charges                                             10                                                            16,090

Balance, October                                                     31                                                            16,090

The general ledger Cash account contained the following entries for the month of October.

                                                                               Cash                                                                   

                    Balance, October               1 17,801      Disbursements in October         45,271

                    Receipts during October     45,000

Deposits in transit at October 31 are $4,800, and checks outstanding at October 31 total $1,550. Cash on hand at October 31 is $250. The bookkeeper improperly entered one check in the books at $210.00 which was written for $180.00 for supplies (expense); it cleared the bank during the month of

October.

Instructions

(a) Prepare a bank reconciliation dated October 31, 2014, proceeding to a correct balance.

(b) Prepare any entries necessary to make the books correct and complete.

(c) What amount of cash should be reported in the October 31 balance sheet?