Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Horace Corporation has received its October, 2021, bank statement from the Last National Bank. The statement is summarized as follows: Balance, October 1 Deposits
Horace Corporation has received its October, 2021, bank statement from the Last National Bank. The statement is summarized as follows: Balance, October 1 Deposits during October Note collected for Horace, including $40 interest Checks cleared during October Bank service charge Balance, October 31 42,609 Balance $ 9,369 $ 32,200 1,040 33,240 34,500 20 34,520 8,089 $ 8,089 Horace's unadjusted cash account (in T form) contained the following amounts: Cash Balance, October 1 10,050 Oct disbursements Oct receipts 34,690 Balance, October 31 9,837 34,903 Additional information: 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. (a) On the following page, prepare a bank reconciliation for Horace Corporation for the month of October, 2021. (b) Prepare any necessary journal entry(ies) for Horace as of October 31, 2021, as a result of this bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started