Question

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 On October 31, Year 1, A company general ledger shows a checking account balance of $8,400. The company's cash receipts for the month total $74,340, of which $71,300 has been deposited in the bank. In addition, the company has written checks for $72,470, of which $71,000 has been processed by the bank. 5 points The bank statement reveals an ending balance of $11,800 and includes the following items not yet recorded by the company: bank service fees of $160, note receivable collected by the bank of $5,100, and interest earned on the account balance plus from the note of $370. After closer inspection, the company realizes that the bank incorrectly charged the company's account $340 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, Year 1. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding Bank Reconciliation October 31, Year 1 Company's Cash Balance $ 11,800 Per general ledger 3,040 Interest earned (1,470) Service fees Bank error Note received $ 13,370 Company balance per reconciliation oool 8,400 370 (160) 340 X 5,100 x Bank balance per reconciliation

Answer 1

А D 1 2 3 Bank's Cash Balance 4 Per Bank statement 5 Deposits outstanding 6 Checks outstanding 7 Bank error 8 9 Bank balance per reconciliation B C Bank Reconciliation October 31, Year 1 Company's Cash Balance $ 11,800 Per general ledger $ 3,040 Interest earned $ -1,470 Service fees $ 340 Note received $ 8,400 $ 370 $ - 160 $ 5,100 00 $ 13,710 Company balance per reconciliation $ 13,710

B A с 1 Bank Reconciliation 2 October 31, Year 1 3 Bank's Cash Balance Company's Cash Balance 4 Per Bank statement 11800 Per general ledger 8400 5 Deposits outstanding =74340-71300 Interest earned 370 6 Checks outstanding =71000-72470 Service fees - 160 7 Bank error 340 Note received 5100 8 9 Bank balance per reconciliation =SUM(B4:37) Company balance per reconciliation =SUM(D4:07)

No. Credit Debit $ 5,470 1 Date General Journal Oct-31 Cash Interest revenue Notes receivable $ 370 $ 5,100 2 160 Oct-31 Service fee expense Cash 160