Question: Johnson Corporation s bank statement for October reports an ending balance

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.
1. Prepare the October bank reconciliation for Johnson Corporation.
2. What amount will be reported as cash on the October 31 balance sheet?

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  • CreatedSeptember 22, 2015
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