Jessie has a cash account per general ledger that shows a balance of $78,659 at October 31, 2021. Bank statement from Ocean Paradise Bank on that date shows the following date shows the following balance. 31 October Amount $88,080 Comparison of checking account details with cash account details reveals facts as follows. 1. A note receivable of $13,070 was invoiced by the bank for Jessie on the 14th October plus $713 interest and the bank has charged $137 on the billing. No interest has been recognized on these notes. 2. Check No. 175 the amount of $5,741 was entered in the cash journal as $5,471 and Check No. 189 of $2,040 was entered in the cash journal as $2,400. Both checks have been issued to pay for the purchase of supplies. 3. The bank has charged Jessie account. for customer unbilled checks amounting to $789 on October 23. 4. Deposit in progress is $7,388 and outstanding check no. 123 on October 28 totaling $5,309. 5. There was a canceled check issued by Kenny to Leo for $2,079 that was incorrectly charged to Jessie by the bank. 6. The bank statement shows a $585 fee for account maintenance service fees current account. 7. Check outstanding no. 122 is $1,127. 8. On October 27, the company issued check no. 432 for $5,342 to Bazzi on credit. The check, which the bank disbursed in October, was incorrectly journalized and posted by Jessie for $5,432. This check is issued to pay equipment purchases. Instructions: a. Prepare a bank reconciliation for Jessie on October 31, 2021. b. Prepare the adjusting entries for Jessie on October 31, 2021.
Jessie has a cash account per general ledger that shows a balance of $78,659 at
October 31, 2021. Bank statement from Ocean Paradise Bank on that date
shows the following date shows the following balance.
31 October Amount $88,080
Comparison of checking account details with cash account details reveals facts
as follows.
1. A note receivable of $13,070 was invoiced by the bank for Jessie on the 14th
October plus $713 interest and the bank has charged $137 on the billing. No interest has been recognized on these notes.
2. Check No. 175 the amount of $5,741 was entered in the cash journal as $5,471
and Check No. 189 of $2,040 was entered in the cash journal as
$2,400. Both checks have been issued to pay for the purchase of supplies.
3. The bank has charged Jessie account. for customer unbilled checks amounting to $789 on October 23.
4. Deposit in progress is $7,388 and outstanding check no. 123 on October 28
totaling $5,309.
5. There was a canceled check issued by Kenny to Leo for $2,079 that was incorrectly charged to Jessie by the bank.
6. The bank statement shows a $585 fee for account maintenance service fees
current account.
7. Check outstanding no. 122 is $1,127.
8. On October 27, the company issued check no. 432 for $5,342 to Bazzi
on credit. The check, which the bank disbursed in October, was incorrectly journalized and
posted by Jessie for $5,432. This check is issued to pay
equipment purchases.
Instructions:
a. Prepare a bank reconciliation for Jessie on October 31, 2021.
b. Prepare the
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