Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,412. The company's cash receipts for the month total $74,420, of

image text in transcribed
image text in transcribed
image text in transcribed
On October 31, 2024, Gibson Company's general ledger shows a cash account balance of $8,412. The company's cash receipts for the month total $74,420, of which $71,320 has been deposited in the bank. In addition, the company has written checks for $72,482,08 which $71,072 has been processed by the bank. The bank statement roveals an ending balance of $12,092 and includes the following items not yet recorded by Gibson: bank service fees of $200, note recelvable collected by the bank of $5,500, and interest earned on the note of $570. After cioser inspection, Gibson realizes that the bank incorrectly charged the company's occount $500 for an automotic 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, 2024. 2. Record the necessary entries to adjust the balance for cash. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) Journal entry worksheet Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

I Love My Awesome Auditor

Authors: Lovely Hearts Publishing

1st Edition

1794298169, 978-1794298163

More Books

Students also viewed these Accounting questions

Question

2. understand how to implement behavior modification programs;

Answered: 1 week ago

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago