enry Inc. is preparing the monthly bank reconciliation of its checking account balance for the month of October. The bank statement indicates the following: Bank Statement balance, beginning of the month: $ 15,640 Service charge for October $ 65 Interest earned during October $ 80 NSF check for goods purchased on account $ 615 The company's records indicates the following: Company statement account balance $ 15,526 Outstanding checks as of October 31 $ 1,410 Deposit in transit as of October 31 $ 750 Error in recording a check Issued by Henry Inc. Check was recorded as $660 by the company but correct amount of the check is $606 1. Complete the reconciliation by adjusting the bank's end of period balance. List the name of each adjustment, the value on the adjustment (in a separate cell), and then calculated the new adjusted balance. 2. Complete the reconciliation by adjusting the company's end of period balance. List the name of each adjustment, the value on the adjustment (in a separate cell), and then calculated the new adjusted balance. 3. Prepare the necessary adjusting journal entries for the company. Date Account Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
 
 
 
Henry Inc. is preparing the monthly bank reconciliation of its checking account balance for the month of October.
The bank statement indicates the following:
Bank Statement balance, beginning of the month: $ 15,640
Service charge for October $ 65
Interest earned during October $ 80
NSF check for goods purchased on account $ 615
The company's records indicates the following:
Company statement account balance $ 15,526
Outstanding checks as of October 31 $ 1,410
Deposit in transit as of October 31 $ 750
Error in recording a check Issued by Henry Inc. Check was recorded as $660 by the company but correct amount of the check is $606
1. Complete the reconciliation by adjusting the bank's end of period balance. List the name of each adjustment, the value on the
adjustment (in a separate cell), and then calculated the new adjusted balance. 
2. Complete the reconciliation by adjusting the company's end of period balance. List the name of each adjustment, the value on
the adjustment (in a separate cell), and then calculated the new adjusted balance. 
3. Prepare the necessary adjusting journal entries for the company. 
Date Account Debit Credit
 
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

So, are the outstanding checks not included on the adjusting journal entries for the company?

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education