The following errors were found when the controller at Harrison Hotel was doing the October 31 bank
Question:
The following errors were found when the controller at Harrison Hotel was doing the October 31 bank reconciliation.
1. On October 3, Harrison recorded a payment of an account payable as $590. The correct amount was $950. It was correctly recorded by the bank.
2. On October 16, Harrison recorded a deposit as $1,650. The correct amount was $6,150. The deposit was for the collection of an account receivable and the bank recorded it correctly.
3. On October 31, the bank recorded a deposit as $5,150. The correct amount was $1,550. This error was corrected by the bank on November 1. Harrison had correctly recorded the deposit. For each of these errors,
(a) Indicate if and how it would be shown on the bank reconciliation,
(b) Prepare the journal entry for Harrison if required.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak