Question
Horace Corporation has received its October, 2021, bank statement from the Last National Bank. The statement is summarized as follows: Balance Balance, October 1
Horace Corporation has received its October, 2021, bank statement from the Last National Bank. The statement is summarized as follows: Balance Balance, October 1 9,369 Deposits during October $ 32,200 Note collected for Horace, including $40 interest 1.040 33,240 42,609 Checks cleared during October 34,500 Bank service charge 20 34,520 8,089 $ 8,089 Balance, October 31 Horace's unadjusted cash account (in T form) contained the following amounts: Cash Balance, October 1 10,050 Oct disbursements 34,903 Oct receipts 34.690 Balance, October 31 9,837 Additional information: (a) (b) a.) Deposits in transit at October 31-$3,800 Checks outstanding at October 31-$1,050 Check 1497, written on October 22 for supplies expense, was erroneously recorded in the books and records as $146.50. The actual amount the check was written for was $164.50, and this amount cleared the bank on October 26. On the following page, prepare a bank reconciliation for Horace Corporation for the month of October, 2021. Prepare any necessary journal entry(ies) for Horace as of October 31, 2021, as a result of this bank reconciliation.
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