On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,451. The company's cash receipts for the month total $74,680, of which $71,385 has been deposited in the bank. In addition, the company has written checks for $72,521, of which $71,306 has been processed by the bank. The bank statement reveals an ending balance of $13,041 and includes the following items not yet recorded by Affleck: bank service fees of $330, note receivable collected by the bank of $6,800, and interest earned on the note of $1,220. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $1,020 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 $8,451. The company's cash receipts for the month total $74,680, of which $71,385 has been deposited in the bank. In addition, the company has written checks for $72,521, of which $71,306 has been processed by the bank. The bank statement reveals an ending balance of $13,041 and includes the following items not yet recorded by Affleck: bank service fees of $330, note receivable collected by the bank of $6,800, and interest earned on the note of $1,220. After closer inspection, Affleck realizes that the bank incorrectly charged the company's account $1,020 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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

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int
orences
On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,451. The company's cash receipts for the
month total $74,680, of which $71,385 has been deposited in the bank. In addition, the company has written checks for $72,521, of
which $71,306 has been processed by the bank.
The bank statement reveals an ending balance of $13,041 and includes the following items not yet recorded by Affleck: bank service
fees of $330, note receivable collected by the bank of $6,800, and interest earned on the note of $1,220. After closer inspection,
Affleck realizes that the bank incorrectly charged the company's account $1,020 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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. (Amounts to be deducted
should be indicated with a minus sign.)
Bank's Cash Balance
Per bank statement
Bank balance per reconciliation
Bank Reconciliation
October 31, 2024
Company's Cash Balance
Per general ledger
Company balance per reconciliation
m

Homework i
ht
ences
Required 1 Required 2
Record the necessary entries to adjust the balance for cash. (If no entry is required for a transaction/event, select "
Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Record the amounts that increase cash.
Note: Enter debits before credits.
Date
October 31,
2024
Record entry
General Journal
Saved
Clear entry
Debit
Credit
View general journal

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