Homework Help is Here – Start Your Trial Now!
Business
Accounting
On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Gibson: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the note of $1,170. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $980 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.

On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Gibson: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the note of $1,170. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $980 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do not give answer in image 

On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Gibson: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the note of $1,170. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $980 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 Deposits outstanding Bank error Checks outstanding Bank balance per reconciliation $ $ Bank Reconciliation October 31, 2024 Company's Cash Balance 12,968 Per general ledger 3,220 Note received 820 Interest earned (1,290) Service fees 15,426 Company balance per reconciliation Required 2 > < Required 1 8,436 6,300 970 (280) 15,426
Transcribed Image Text:On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,448. The company's cash receipts for the month total $74,660, of which $71,380 has been deposited in the bank. In addition, the company has written checks for $72,518, of which $71,288 has been processed by the bank. The bank statement reveals an ending balance of $12,968 and includes the following items not yet recorded by Gibson: bank service fees of $320, note receivable collected by the bank of $6,700, and interest earned on the note of $1,170. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $980 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 Deposits outstanding Bank error Checks outstanding Bank balance per reconciliation $ $ Bank Reconciliation October 31, 2024 Company's Cash Balance 12,968 Per general ledger 3,220 Note received 820 Interest earned (1,290) Service fees 15,426 Company balance per reconciliation Required 2 > < Required 1 8,436 6,300 970 (280) 15,426
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Bank reconciliation statement
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS