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Need help preparing bank reconciliation and journal entries for the following scenerio: Exercise 4-11B Calculate the balance of cash using a bank reconciliation (L04-5) On
Need help preparing bank reconciliation and journal entries for the following scenerio:
Exercise 4-11B Calculate the balance of cash using a bank reconciliation (L04-5) On October 31. Year 1. A company general ledger shows a checking account balance of $8,442. The company's cash receipts for the month total $74,620, of which $71,370 has been deposited in the bank. In addition, the company has written checks for $72,512, of which $71,252 has been processed by the bank. The bank statement reveals an ending balance of $12,822 and includes the following items not yet recorded by the company bank service fees of $300, note receivable collected by the bank of $6,500, and interest earned on the account balance plus from the note of $1070. After closer inspection, the company realizes that the bank incorrectly charged the company's account $900 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error, Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, Year 1. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement Bank Reconciliation October 31, Year 1 Company's Cash Balance Per general ledger Bank balance per reconciliation Company balance per reconciliation 2. Record the necessary entries to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Pro 2. Record the necessary entries to adjust the balance for cash, (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Step by Step Solution
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