The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2007 bank statement included the following information: Balance, October 1,2007 32,690 Deposit 86,000 Checks proceeds (75,200) Service charges (350) NSF Checks (1,600) Monthly loan payment deducted directly by bank from account (includes $400 in interest) (3,400) Balance, October 31,2007 38,140 The company's general ledger cash (checking) account had a balance of $42,544 at the end of October. Deposits outstanding totaled $4,224 and all checks written by the company were processed by the bank except for those totaling $5,620. In addition, a check for $500 for the purchase of office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Required: 1. Prepare a bank reconciliation for the month of October. 2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.
Paper#1622 | Written in 18-Jul-2015Price : $25