On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The company's cash receipts for the month total $74,700, of which $71,390 has been deposited in the bank. In addition, the company has written checks for $72,524, of which $71,324 has been processed by the bank. The bank statement reveals an ending balance of $13,114 and includes the following items not yet recorded by Crowe: bank service fees of $340, note receivable collected by the bank of $6,900, and interest earned on the note of $1,270. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $1,060 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.) CROWE COMPANY Bank Reconciliation October 31, 2024 Bank's Cash Balance Company's Cash Balance Per bank statement $ 13,114 Per general ledger $ 8,454 Deposits outstanding 1,200 Note received 6,900 Bank error Checks outstanding Bank balance per reconciliation $ 12,064 Company balance per reconciliation 1,060 Interest earned 1,270 3,310 Service fees (340) < Required 1 $ 16,284 Required 2 >
On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The company's cash receipts for the month total $74,700, of which $71,390 has been deposited in the bank. In addition, the company has written checks for $72,524, of which $71,324 has been processed by the bank. The bank statement reveals an ending balance of $13,114 and includes the following items not yet recorded by Crowe: bank service fees of $340, note receivable collected by the bank of $6,900, and interest earned on the note of $1,270. After closer inspection, Crowe realizes that the bank incorrectly charged the company's account $1,060 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.) CROWE COMPANY Bank Reconciliation October 31, 2024 Bank's Cash Balance Company's Cash Balance Per bank statement $ 13,114 Per general ledger $ 8,454 Deposits outstanding 1,200 Note received 6,900 Bank error Checks outstanding Bank balance per reconciliation $ 12,064 Company balance per reconciliation 1,060 Interest earned 1,270 3,310 Service fees (340) < Required 1 $ 16,284 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The company's cash receipts for the
month total $74,700, of which $71,390 has been deposited in the bank. In addition, the company has written checks for $72,524, of
which $71,324 has been processed by the bank.
The bank statement reveals an ending balance of $13,114 and includes the following items not yet recorded by Crowe: bank service
fees of $340, note receivable collected by the bank of $6,900, and interest earned on the note of $1,270. After closer inspection,
Crowe realizes that the bank incorrectly charged the company's account $1,060 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.)
CROWE COMPANY
Bank Reconciliation
October 31, 2024
Bank's Cash Balance
Company's Cash Balance
Per bank statement
$
13,114 Per general ledger
$
8,454
Deposits outstanding
1,200
Note received
6,900
Bank error
Checks outstanding
Bank balance per reconciliation
$ 12,064 Company balance per reconciliation
1,060
Interest earned
1,270
3,310
Service fees
(340)
< Required 1
$
16,284
Required 2 >
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