On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,457. The company's cash receipts for the month total $74,720, of which $71,395 has been deposited in the bank. In addition, the company has written checks for $72,527, of which $71,342 has been processed by the bank. The bank statement reveals an ending balance of $13,187 and includes the following items not yet recorded by Gibson: bank service fees of $350, note receivable collected by the bank of $7,000, and interest earned on the note of $1,320. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $1,100 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 Record the necessary entries to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the amounts that increase cash. Moto Ente before credite
On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,457. The company's cash receipts for the month total $74,720, of which $71,395 has been deposited in the bank. In addition, the company has written checks for $72,527, of which $71,342 has been processed by the bank. The bank statement reveals an ending balance of $13,187 and includes the following items not yet recorded by Gibson: bank service fees of $350, note receivable collected by the bank of $7,000, and interest earned on the note of $1,320. After closer inspection, Gibson realizes that the bank incorrectly charged the company's account $1,100 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 Record the necessary entries to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the amounts that increase cash. Moto Ente before credite
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,457. The company's cash receipts for the
month total $74,720, of which $71,395 has been deposited in the bank. In addition, the company has written checks for $72,527, of
which $71,342 has been processed by the bank.
The bank statement reveals an ending balance of $13,187 and includes the following items not yet recorded by Gibson: bank service
fees of $350, note receivable collected by the bank of $7,000, and interest earned on the note of $1,320. After closer inspection,
Gibson realizes that the bank incorrectly charged the company's account $1,100 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
Record the necessary entries to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
Record the amounts that increase cash.
Moto Ente
before credite
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