On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The company's cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank. The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Affleck: bank service fees of $300, note receivable collected by the bank of $6,500, and interest earned on the note of $1.070. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $900 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.

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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2
Record the amounts that increase cash.
Note: Enter debits before credits.
Date
October 31,
2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:1 2 Record the amounts that increase cash. Note: Enter debits before credits. Date October 31, 2024 Record entry General Journal Clear entry Debit Credit View general journal
On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The company's cash receipts for
the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of
which $71,252 has been processed by the bank.
The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Affleck: bank service
fees of $300, note receivable collected by the bank of $6,500, and interest earned on the note of $1,070. After closer inspection,
Affleck realizes that the bank incorrectly charged the company's account $900 for an automatic withdrawal that should have been
charged to another customer's account. The bank agrees to the error.
Required:
1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024.
2. Record the necessary entries to adjust the balance for cash.
Transcribed Image Text:On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The company's cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank. The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by Affleck: bank service fees of $300, note receivable collected by the bank of $6,500, and interest earned on the note of $1,070. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $900 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.
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