Question

The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information: Balance, October 1, 2016 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $440 in interest) $ 32,730 88,000 (77,200) (390) (1,640) (3,840) Balance, October 31, 2016 $ 37,660 The company's general ledger cash (checking) account had a balance of $42,620 at the end of October. Deposits outstanding totaled $4,264, and all checks written by the company were processed by the bank except for those totaling $5,660. In addition, a check for $540 for the purchase of office furniture was incorrectly recorded by the company as a $54 disbursement. The bank correctly processed the check during October Required: 1. Prepare a bank reconciliation for the month of October. Fitzgerald Company's Bank Reconciliation Balance per bank statement Add: Deduct: Corrected cash balance Balance per books Deduct:

Answer 1

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Aus & Bank Reconciliation Particuloors Amdents) Balance as per bachk statement $ 37600 Add- Deposit outstapping $4264 Deducti Checks outstanding 5660) Corrected Cash Balance $36204 Balance per books $42620 Deduct: Loan Error payment in recording ($3840) $486) check (540-54) NSF check service charges Gono) Adjusted Balance Account title & Explanation (90) $36264 Caedit Dale pebit 2 Accounts payable $ 486 Cash $ 486 to record Emocy crecim) $390 AR 30 miscellaneous Expenses Accounts p anta Receivable & 1640 note payable (3840-440) $340 Interest Expense Cash Ak To record other transactions) 3440 $5870

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