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at the Bank of bank p ne Fitzgerald Company maintains a checking acc anceled checks on the last day of each month. The October 31, 2021, bank statement inclu Balance, October 1, 2021 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $400 in interest) Balance, October 31, 2021 $ 32,690 86,000 (75,200) (350) (1,600) (3,400) $ 38,140

at the Bank of bank p ne Fitzgerald Company maintains a checking acc anceled checks on the last day of each month. The October 31, 2021, bank statement inclu Balance, October 1, 2021 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $400 in interest) Balance, October 31, 2021 $ 32,690 86,000 (75,200) (350) (1,600) (3,400) $ 38,140

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2021, bank statement included the following information: Balance, October 1, 2021 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $400 in interest) Balance, October 31, 2021 $ 32,690 86,000 (75,200) (350) (1,600) (3,400) $ 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 October. 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.
Transcribed Image Text: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, 2021, bank statement included the following information: Balance, October 1, 2021 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $400 in interest) Balance, October 31, 2021 $ 32,690 86,000 (75,200) (350) (1,600) (3,400) $ 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 October. 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.
Prepare a bank reconciliation for the month of October. Fitzgerald Company's Bank Reconciliation Balance per bank statement Add: Deduct: Corrected cash balance Balance per books Deduct: Corrected cash balance Show Transcribed Text Journal entry worksheet < 1 2 Record the correction of error in cash disbursement. Note: Enter debits before credits. Transaction 1 General Journal Debit Crec
Transcribed Image Text:Prepare a bank reconciliation for the month of October. Fitzgerald Company's Bank Reconciliation Balance per bank statement Add: Deduct: Corrected cash balance Balance per books Deduct: Corrected cash balance Show Transcribed Text Journal entry worksheet < 1 2 Record the correction of error in cash disbursement. Note: Enter debits before credits. Transaction 1 General Journal Debit Crec
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