The ABC company has an ending cash balance at October 31, 2020 in its general ledger...

The ABC company has an ending cash balance at October 31, 2020 in its general ledger of	$ 27,290.00
The balance per the bank statement at October 31, 2020 was	$ 26,455.00		PART 1: BANK RECONCLIATION

The accounting has identified the following information related to the month of October:			Cash balance per bank statement
On October 31, deposit of $2,500 not reflected on the bank statement.
Outstanding cheques of $3,000 on October 31
Cheque for utility expense, $430, was incorrectly recorded in the books as $340.
Cheque of $1,000 from Customer A returned and marked "non-sufficient funds".
The bank teller accidentally entered the deposit total as $805 instead of $850.
Bank service charges of $200, per bank statement			Adjusted cash balance per bank statement

Using the following worksheet to record your answers, prepare the following:			Cash balance per books
1. A bank reconciliation for ABC company at October 31, 2020.
2. Any necessary journal entries resulting from the bank reconciliation



			Adjusted cash balance per books

			PART 2: JOURNAL ENTRIES

		No	General Journal	Debit	Credit
		1


		2


		3

Expert Solution


	ABC Company
	Bank Reconciliation
	Oct. 31
	Bank Statement Balance		26,455	Book Balance		27,290
	Add:			Add:

	Deposit in Transit	2,500
	Error by bank teller	45

	Deduct:			Deduct:

	Outstanding Checks	3,000		Error in recording check	90
				Bank CHARGES	200
				NSF Check	1,000


	Adjusted Bank Balance		26,000	Adjusted Book Balance		26,000


	Journal Entries
	General Journal	Debit	Credit
1)	Accounts Receivable	1,000
	Cash		1000
	(To record NSF Check)

2)	Utilities Expense	90
	Cash		90
	(To record error correction)

3)	Bank Charges	200
	Cash		200
	(To record bank charges)

ekkarill92 answered 1 year ago

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