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.

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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