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, 2007 bank statement included the following information:
Balance, October 1, 2007 ...... 32,690
Deposit ............. 86,000
Checks proceeds ........ (75,200)
Service charges .......... (350)
NSF Checks .......... (1,600)
Monthly loan payment deducted directly by
bank from account (includes $400 in
interest) ............. (3,400)
Balance, October 31, 2007 ...... 38,140
The company's general ledger cash (checking) account had a balance of $42,544 at the end of October Deposits outstanding totaled $4,224 and all checks written by the company were processed by the bank except for those totaling $5,620. In addition, a check for $500 for the purchase of office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during

Required:
1. Prepare a bank reconciliation for the month of October.
2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.



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  • CreatedFebruary 08, 2013
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