Johnson Corporation's bank statement for October reports an ending balance of $21,676, whereas Johnson's cash account shows
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Question:
Johnson Corporation's bank statement for October reports an ending balance of $21,676, whereas Johnson's cash account shows a balance of $21,220 on October 31. The following additional information is available:
- A $755 deposit made on October 31 was not recorded by the bank until November.
- At the end of October, outstanding checks total $1,222.
- The bank statement shows bank service charges of $125 not yet recorded by the company.
- The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank.
- A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.
Required:
1. Prepare the October bank reconciliation for Johnson Corporation.
Johnson Corporation | ||
Bank Reconciliation Schedule | ||
October 31 | ||
Cash balance from bank statement | $ | |
| ||
| ||
Adjusted cash balance | $ | |
Cash balance from company records | ||
| ||
Less: | ||
| $ | |
| ||
Adjusted cash balance | $ |
2. What amount will be reported as cash on the October 31 balance sheet?
$
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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