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Bank Reconciliation Johnson Corporation\'s bank statement for October reports an

ID: 2461717 • Letter: B

Question

Bank Reconciliation

Johnson Corporation's bank statement for October reports an ending balance of $22,381, whereas Johnson's cash account shows a balance of $22,025 on October 31. The following additional information is available:

A $855 deposit made on October 31 was not recorded by the bank until November.

At the end of October, outstanding checks total $1,222.

The bank statement shows bank service charges of $125 not yet recorded by the company.

The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank.

A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.

Prepare the October bank reconciliation for Johnson Corporation.

Johnson Corporation

Bank Reconciliation Schedule

October 31

Cash balance from bank statement

Correct 5 of Item 1

Add:

Adjusted cash balance

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 7 of Item 1

Correct 8 of Item 1

Less:

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 10 of Item 1

Correct 11 of Item 1

Adjusted cash balance

Correct 13 of Item 1

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 14 of Item 1

Correct 15 of Item 1

Add:

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 17 of Item 1

Correct 18 of Item 1

Less:

Adjusted cash balance

Cash balance from company records

Deposit in transit

Error in recording check

Outstanding checks

Service charge

Correct 20 of Item 1

Correct 21 of Item 1

Adjusted cash balance

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Correct 22 of Item 1

Correct 23 of Item 1

Correct 24 of Item 1

Adjusted cash balance

$

What amount will be reported as cash on the October 31 balance sheet?

Johnson Corporation

Bank Reconciliation Schedule

October 31

Cash balance from bank statement

$

Correct 5 of Item 1

Add:

Adjusted cash balance

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 7 of Item 1

Correct 8 of Item 1

Less:

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 10 of Item 1

Correct 11 of Item 1

Adjusted cash balance

$

Correct 13 of Item 1

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 14 of Item 1

$

Correct 15 of Item 1

Add:

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Service charge

Correct 17 of Item 1

Correct 18 of Item 1

Less:

Adjusted cash balance

Cash balance from company records

Deposit in transit

Error in recording check

Outstanding checks

Service charge

Correct 20 of Item 1

$

Correct 21 of Item 1

Adjusted cash balance

Cash balance from company records

Deposit in transit

Error in recording check

NSF check

Outstanding checks

Correct 22 of Item 1

Correct 23 of Item 1

Correct 24 of Item 1

Adjusted cash balance

$

What amount will be reported as cash on the October 31 balance sheet?

Explanation / Answer

Bank reconciliation Statement Particulars Amount Cash balance per books                     22,025.00 Bank service charge                         (125.00) Deposits not recorderd in Bank Statement                         (855.00) Cheque Incorrectly recorded by company(973-379)                           594.00 Cheques deposited but returned due to insuffiecient funds                         (480.00) Outstanding cheques                       1,222.00 Cash balance per bank                     22,381.00 Statement showing computations Particulars Amount Cash balance per books                     22,025.00 Bank service charge                         (125.00) Cheque Incorrectly recorded by company(973-379)                           594.00 Cheques deposited but returned due to insuffiecient funds                         (480.00) Adjusted Cash Balance                     22,014.00

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