On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,403. The company's cash receipts for the month total $74,360, of which $71,305 has been deposited in the bank. In addition, the company has written checks for $72,473, which $71,018 has been processed by the bank. The bank statement reveals an ending balance of $11,873 and includes the following items not yet recorded by Gibson: bank service fees of $170, note receivable collected by the bank of $5,200, and interest earned on the note of $420. After closer inspection, Gibsc realizes that the bank incorrectly charged the company's account $380 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.

On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,403. The company's cash receipts for the month total $74,360, of which $71,305 has been deposited in the bank. In addition, the company has written checks for $72,473, which $71,018 has been processed by the bank. The bank statement reveals an ending balance of $11,873 and includes the following items not yet recorded by Gibson: bank service fees of $170, note receivable collected by the bank of $5,200, and interest earned on the note of $420. After closer inspection, Gibsc realizes that the bank incorrectly charged the company's account $380 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The company's cash receipts for the month total $74,700, of which $71,390 has been deposited in the bank. In addition, the company has written checks for $72,524, of which $71,324 has been processed by the bank. The bank statement reveals an ending balance of $13,114 and includes the following items not yet recorded by Crowe: bank service fees of $340, note receivable collected by the bank of $6,900, and interest earned on the note of $1,270. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $1,060 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash. Complete this question by entering your answers in the tabs…
On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,403. The company's cash receipts for the month total $74,360, of which $71,305 has been deposited in the bank. In addition, the company has written checks for $72,473, of which $71,018 has been processed by the bank. The bank statement reveals an ending balance of $11,873 and includes the following items not yet recorded by Gibsor: bank service fees of $170, note receivable collected by the bank of $5,200, and interest earned on the note of $420. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $380 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. :0 F1 Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash. Complete this question by entering your answers in the…
On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The company's cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank. The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Affleck: bank service fees of $300, note receivable collected by the bank of $6,500, and interest earned on the note of $1,070. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $900 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.
On October 31, 2024, Crowe Company’s general ledger shows a cash account balance of $8,409. The company’s cash receipts for the month total $74,400, of which $71,315 has been deposited in the bank. In addition, the company has written checks for $72,479, of which $71,054 has been processed by the bank. The bank statement reveals an ending balance of $12,019 and includes the following items not yet recorded by Crowe: bank service fees of $190, note receivable collected by the bank of $5,400, and interest earned on the note of $520. After closer inspection, Crowe realizes that the bank incorrectly charged the company’s account $460 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error. Required:1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024.2. Record the necessary entries to adjust the balance for cash.
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,433. The company's cash receipts for the month total $74,560, of which $71,355 has been deposited in the bank. In addition, the company has written checks for $72,503, of which $71,198 has been processed by the bank. The bank statement reveals an ending balance of $12,603 and includes the following items not yet recorded by Damon: bank service fees of $270, note receivable collected by the bank of $6,200, and interest earned on the account balance plus from the note of $920. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $780 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) DAMON COMPANY Bank Reconciliation…
On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,397. The company’s cash receipts for the month total $74,320, of which $71,295 has been deposited in the bank. In addition, the company has written checks for $72,467, of which $70,982 has been processed by the bank.The bank statement reveals an ending balance of $11,727 and includes the following items not yet recorded by Damon: bank service fees of $150, note receivable collected by the bank of $5,000, and interest earned on the account balance plus from the note of $320. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $300 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error.Required:1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021.2. Record the necessary entries to adjust the balance for cash.
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the bank of $6,400, and interest earned on the account balance plus from the note of $1,020. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $860 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) DAMON COMPANY Bank…
The cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. Check no. 742 in the amount…
ठी = =
Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash sales of $1,885 for the last three days of the month have not yet been deposited. The bank statement dated July 31 shows bank service fees of $55 and an NSF check from a customer of $250. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on July 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.
Jansen Company’s general ledger showed a checking account balance of $25,720 at the end of May 2021. The May 31 cash receipts of $2,530, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2021, showed bank service charges of $57. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $2,080. Required: Prepare a bank reconciliation as of May 31, 2021. [Hint: You will need to compute the balance that would appear on the bank statement.]
Gray Corporation controls its cash by depositing receipts on a daily basis and making all disbursements by cheque. After all the posting for the month of August 2020 was completed, the cash balance in the general ledger account at the end of the month was $10,475. The bank statement for the month end received from the First National Bank showed the balance to be $18,000. The following data are available for the purpose of reconciling these balances: a. Cash receipts collected on August 31 amounting to $3,000 have been placed in the night depository and do not appear on the bank statement. b. Bank memos previously not available to the company are included with the bank statement. A memo for an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 Note Receivable has been collected by the bank, ($1,950 deposit and a bank charge of $50).…