Exercise 4-44 (Algorithmic) Bank Reconciliation

Johnson Corporation's bank statement for October reports an ending balance of $21,676, whereas Johnson's cash account shows a balance of $21,220 on October 31. The following additional information is available:

1. A $755 deposit made on October 31 was not recorded by the bank until November.
2. At the end of October, outstanding checks total $1,222.
3. The bank statement shows bank service charges of $125 not yet recorded by the company.
4. The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank.
5. A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.

Required:

1. Prepare the October bank reconciliation for Johnson Corporation.

Johnson Corporation
Bank Reconciliation Schedule
October 31
Cash balance from bank statement		$
Add: Deposit in transit Add: Error in recording check Add: Outstanding checks Less: Deposit in transit Less: Error in recording check Service charge
Add: Error in recording check Add: Outstanding checks Less: Deposit in transit Less: Error in recording check Less: Outstanding checks NSF check
Adjusted cash balance		$
Cash balance from company records
Add: Error in recording check Add: Outstanding checks Less: Deposit in transit Less: Error in recording check Less: Outstanding checks NSF check
Less:
Deposit in transit Error in recording check Outstanding checks Service charge	$
Deposit in transit Error in recording check NSF check Outstanding checks
Adjusted cash balance		$

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