On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,427. The company's cash receipts for the month total $74,520, of which $71,345 have been deposited in the bank. In addition, the company has written checks for $72,497, of which $71,162 have been processed by the bank. The bank statement reveals an ending balance of $12,457 and includes the following items not yet recorded by Crowe: bank service fees of $250, note receivable collected by the bank of $6,000, and interest earned on the note of $820. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $700 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: a. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. b. Record the necessary entries to adjust the balance for cash.
On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,427. The company's cash receipts for the month total $74,520, of which $71,345 have been deposited in the bank. In addition, the company has written checks for $72,497, of which $71,162 have been processed by the bank. The bank statement reveals an ending balance of $12,457 and includes the following items not yet recorded by Crowe: bank service fees of $250, note receivable collected by the bank of $6,000, and interest earned on the note of $820. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $700 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: a. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. b. Record the necessary entries to adjust the balance for cash.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1PB
Related questions
Question
None
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning