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

See similar textbooks

Related questions

Q: The following information relates to Cullumber Limited's Cash account. The reconciled cash balance…

A: Bank reconciliation:Bank reconciliation is a process of comparing the company's bank statement with…

Q: Nickleson Company had an unadjusted cash balance of $9,497 as of May 31. The company's bank…

A: Bank reconciliation statement means the statement where the bank balance as per cash book and bank…

Q: Required: 1. Prepare a bank reconciliation at August 31. 2. Prepare the necessary adjusting journal…

A: Bank Reconciliation Statement is an account prepared to match the balances as per firm's cash book…

Q: On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The…

A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book with…

Q: August 31, 20 Compa balance per its books $26.48 statement balance of $17,260. A comparison of the…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: CASE ACCOUNTING Empire Ltd had a cash balance per book of $ 40,690.50 on Jun 30, 2022. The bank…

A: Ideally cash balance as per cashbook must reconcile with bank balance. In case of any difference,…

Q: Below is information about Lisa Ltd's cash position for the month of June 2019. 1. The…

A: a) Requirment a Total Receipts as per original cash book $ 292,704 ETF from customer $644…

Q: Praise Corporation has just received the monthly bank statements dated July 31, 2020 from Citibank.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: enry Inc. is preparing the monthly bank reconciliation of its checking account balance for the month…

A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…

Q: epare a bank reconciliation Statement at September 30

A: Bank Reconciliation Statement: In the banking scenario, the account and mirror account having the…

Q: On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,397. The…

A: Bank reconcilation (Bank's Cash balance) As per bank statement 11727 Add: Deposits outstanding…

Q: bank reconciliation

A: A bank reconciliation statement is a useful statement that lets you find the differences in cash…

Q: Marjorie Company's cash balance per the books at the end of the month was $8,600. After comparing…

A: The objective of the question is to calculate the adjusted book balance at the end of the month for…

Q: Nickleson Company had an unadjusted cash balance of $9,114 as of May 31. The company's bank…

A: Cash balance is the amount of cash that an entity records as balance in the cash book. It is the…

Q: Nickleson Company had an unadjusted cash balance of $4,304 as of May 31. The company's bank…

A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…

Q: Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at…

A: The bank reconciliation statement is the statement prepared to adjust the cash book balance and pass…

Q: Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of…

A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…

Q: A company's Cash account shows a balance of $5,630 at the end of the month. Comparing the company's…

A: Bank Reco Statement :-…

Q: Determine the cash balance per Oriole Limited's books. Cash balance $ Prepare the bank…

A: Introduction:- A bank reconciliation statement is plays vital role in any organization. which…

Q: The cash account of Sheffield Co. showed a ledger balance of $7,088.13 on June 30, 2020. The bank…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Western Flyers received its bank statement for the month of July 2019 with an ending balance of…

A: 1. Cheque outstanding are not credited to the bank therefore same will be deducted. 2. Deposit in…

Q: The Cash account of Ranger Security Systems reported a balance of $2,550 at December 31, 2025. There…

A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…

Q: Nickleson Company had an unadjusted cash balance of $5,632 as of May 31. The company's bank…

A: Bank reconciliation statement:— It is the statement that shows the reconciliation of balance as per…

Q: bank reconciliation

A: A bank reconciliation statement is extremely important for any business. Even individuals can…

Q: Hathaway Company’s general ledger shows a cash account balance of $23,290 on July 31, 2024. Cash…

A: The purpose of bank reconciliation is to identify any discrepancies or errors in the organization's…

Q: Serato Company keeps all its cash in a checking account. An examination of the entity's accounting…

A: Bank reconciliation refers to tally the balances of passbooks from the accounting records kept by…

Q: On July 31, 2022, Metlock Company had a cash balance per books of $6,280.00. The statement from…

A: The first step in preparing the necessary adjusting entries is to identify the differences between…

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

ok
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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

Step 2: Part 1

Step 3: Part 2

Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Using the following information, prepare a bank reconciliation for Cullumber Company for July 31, 2022. a. The bank statement balance is $3,700. b. The cash account balance is $4,100. C. Outstanding checks totaled $1,260. d. Deposits in transit are $1,620. e. The bank service charge is $31. f. A check for $87 for supplies was recorded as $78 in the ledger.
On December 31, 2020 Buttercup Company had a cash balance per books of $10,922.25. The bank statement from Tampa Savings Bank on that date showed a balance of $10,356.90. A comparison of statement with the cash account revealed the following facts: a. Deposits in transit were$11,663.10.10. b. Outstanding checks at December 31 totaled $1,750.875. c. On December 31, the bank statement showed on NSF charge of 1006.50 for a check issued by Charlie Holston, a customer, to Buttercup Company on account. d. A $5,383.50 note receivable was collected by the bank for buttercup Company. The bank charged a collection fee of $43.50. e. Cash sales of $1,474.50 on December 20 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $1,399.50. The bank credited Buttercup Company for the correct amount. f. A $3,750 note receivable was collected by the bank for Bollywood Company. The bank charged a collection fee of $26.625. However the bank incorrectly…
Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing its monthly financial statements. The following information is produced by comparing the cash deposits and withdrawals recorded by the business in July with their bank statement received for the month ending 31 July 2021: The bank statement for the month of July shows a credit balance of $112,250 as at 31 July 2021. Safe Security Doors Ltd.’s cash at bank ledger account has a debit balance of $109,230 at 31 July 2021. $7,850 cash received from a customer Adam on 30 July (invoice no. 211) and $11,045 cash received from another customer Brian on 31 July (invoice no. 213) are recorded in the entity’s accounting record but are not shown in the bank statement. Interest earned on bank account is $85. Cheque no. 112 and 113 are not included in the bank statement. # 112 $ 8,045 # 113 $ 6,950 Bank deducted transaction fees of $15 for an overseas transfer by the entity. Safe Security Doors…
On february 28th, 2022, Mark, the accountant of the scented candle business Smells LTD, prepared the documents for his february bank reconciliation. He noted a Cash balance of $15,534 in the general ledger. The bank statement on that date showed a balance of $17,675. A comparison of the bank statement with the cash account revealed the following The bank statement included service charges and card processing fees of $50 The bank statement included electronic collections (EFT) from customers, totaling $5,520. Smells LTD had not recorded the EFT yet A deposit of $200 made by another company was incorrectly added to Breathe-ins account by their bank Recent deposits worth $5,400 are not currently showing on the bank statement Cheques outstanding on January 31 totaled $3,754. Of these, $1,883 cleared the bank in February and are no longer outstanding. All new cheques written in February cleared the bank during the month Enter amounts with the final number rounded to the nearest $.…
The Cash account of Gate City Security Systems reported a balance of $2,490 at December 31, 2024. There were outstanding checks totaling $1,000 and a December 31 deposit in transit of $300. The bank statement, which came from Tri Cities Bank, listed the December 31 balance of $3,810. Included in the bank balance was a collection of $630 on account from Nicole Lee, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Gate City earned on its bank balance. Prepare Gate City's bank reconciliation at December 31. Gate City Security Systems Bank Reconciliation December 31, 2024 Bank: Balance, December 31, 2024 ADD: LESS Adjusted bank balance, December 31, 2024 Book: Balance, December 31, 2024 ADD: LESS Adjusted book balance, December 31, 2024
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
Bourne Incorporated reports a cash balance at the end of the month of $2,620. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($85), an NSF check from a customer ($350), a customer’s note receivable collected by the bank ($1,000), and interest earned ($35). Required: Record the necessary entries to adjust the balance of cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2 Service Fee Expense selected answer correct 85 selected answer correct Notes receivable incorrect answer please help me finish the problem i keep getting stuck. Its not -85 for credit and its not -35 so what is it
On July 31, 2020, Concord Company had a cash balance per books of $6,043.75. The statement from Dakota State Bank on that date showed a balance of $7,738.05. A comparison of the bank statement with the Cash account revealed the following facts. 1. 2. 3. 4. 5. 6. The bank service charge for July was $25. The bank collected $1,680 for Keeds Company through electronic funds transfer. The July 31 receipts of $1,225.50 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. Company check No. 2480 issued to L. Taylor, a creditor, for $361 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $316. Checks outstanding on July 31 totaled $1,888.80. On July 31, the bank statement showed an NSF charge of $579 for a check received by the company from W. Krueger, a customer, on account.