Question

Exercise 4-44 Bank Reconciliation Johnson Corporation's bank statement for October reports an ending balance of $22,381, whereas Johnson's cash account shows a balance of $22,025 on October 31. The following additional information is available: a. A $855 deposit made on October 31 was not recorded by the bank until November b. At the end of October, outstanding checks total $1,222. C. The bank statement shows bank service charges of $125 not yet recorded by the company. d. The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank. e. A $480 check 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 Johnson Corporation. Johnson Corporation Bank Reconciliation Schedule October 31 Cash balance from bank statement Add: Deposit in transit Less: Outstanding checks odbo Adjusted cash balance Cash balance from company records Add: Error in recording check Less: Service charge NSF check Adjusted cash balance Feedback Check My Work 1. Bank reconciliation is the process of comparing the accounting records and the bank statement, determining where discrepancies occur, and accounting for them. 2. What amount will be reported as cash on the October 31 balance sheet?

Answer 1

Bank reconciliation Schedule

October 31

Cash balance from bank statement		22381
Add:
Deposit in transit		855
Less:
Outstanding Check		-1222
Adjusted cash balance		22014
Cash balance from company records		22025
Add:
Error in recording check		594
Less;
Service charge	-125
NSF Check	-480	-605
Adjusted cash balance		22014

b) Cash reported = $22014