Question

800 In October 2019, Old City Antiques checking account at Barnett Bank. The bank statement dated October 31, 2019 for Old City Antiques follows: Beginning Balance, October 1, 2019 Deposits and other credits Oct. 2 $36.000 10 14.000 52.000 24. EFT St. Augustine Hotel 450 31. Interest revenue 50 103,300 Checks and other debits Oct. 2 EFT to FPL (utilities) 6 Ck#325 3.415 10 Ck8327 10 Ck8326 2.700 27 Ck#329 1,925 27 EFT to ATT 28 Ck340 295 31 Bank Service charge 27 (9.232) Ending Balance, Oct. 31, 2019 94,068 775 Old City Antiques" cash account in the general Ledger shows the following transactions for October: CashBarnett Bank Checking account Balance Oct. 2 Deposit 36,000 800 14,000 52,000 1,770 3,415 Oct. 2 ck#325 2,070 4 ck#326 775 5 ck#327 402 10 ck#328 1,925 21 ck#329 295 23 ck#340 415 29 ck#341 31 Balance Requirement: 1. Prepare the bank reconciliation at Oct. 31, 2019 2. Journalize any required entries from the bank reconciliation. Post to the Cash T-Account to verify the balance of the account matchers the adjusted book balance from the bank reconciliation All checks are for operating expenses.

Answer 1

Adjusted Balance as per Bank Statement on Oct 31:
	Amount $
Bank Statements closing balance	94068
Add: Deposit in transit:	1770
Less:Outstanding Checks:
Ck328	-402
Ck341	-415
Adjusted C. Balance as per Bank Statement:	95021
Adjusted Balance as per Cash Account on Oct 31:
	Amount $
Cash Book closing balance	95273		Balance on Oct 31:
Less:Short recording Ck326	-630		Deposits	Payments
Add:on Oct 24 EFT St. Augustine Hotel	450		36000	3415
Add: on Oct 31 Interest revenue	50		800	2070
Less:on Oct 2 EFT to FPL(utilities)	-20		14000	775
Less:on Oct 27 EFT to ATT	-75		52000	402
LESS:on Oct 31 Bank Charges	-27		1770	1925
Adjusted C. Balance as per Cash Account:	95021			295
				415
			104570	9297
			C. Balance	95273
Journal Entries:
Accounts Title	Debit $	Credit $
Accounts Payable (2070-2700)	630
Cash		630
(being short recording for Ck326)
Cash	450
Accounts Receivable		450
(being payment received from AR)
Cash	50
Interest Revenue		50
(being interest received)
Accounts Payable (FPL)	20
Cash		20
(being payment to creditor FPL for utilities)
Accounts Payable (ATT)	75
Cash		75
(being payment to creditor ATT)
Bank Charges	27
Cash		27
(being bank service charges)