Bank ReconciliationJavinal Corporation's bank statement for October reports an ending balance of $22,381, whereas Javinal's cash account shows a balance of $22,025 on October 31. The following additional information is available:An $855 deposit made on October 31 was not recorded by the bank until November.At the end of October, outstanding cheques total $1,222.The bank statement shows bank service charges of $125 not yet recorded by the company.The company erroneously recorded as $973 a cheque that it had actually written for $379. It was correctly processed by the bank.A $480 cheque from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.Required:1. Prepare the October bank reconciliation for Javinal Corporation. 2. What amount will be reported as cash on the October 31 statement of financial position?

Bank reconciliation: Bank reconciliation is a statement which is prepared to reconcile the cash…

Answered: Javinal Corporation's bank statement…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Bank Reconciliation

Javinal Corporation's bank statement for October reports an ending balance of $22,381, whereas Javinal's cash account shows a balance of $22,025 on October 31. The following additional information is available:

An $855 deposit made on October 31 was not recorded by the bank until November.
At the end of October, outstanding cheques total $1,222.
The bank statement shows bank service charges of $125 not yet recorded by the company.
The company erroneously recorded as $973 a cheque that it had actually written for $379. It was correctly processed by the bank.
A $480 cheque from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.

Required:

1. Prepare the October bank reconciliation for Javinal Corporation.

2. What amount will be reported as cash on the October 31 statement of financial position?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions