On October 31, Year 1. A company general ledger shows a checking account balance of $8,427 The company's cash receipts for the month total $74,520, of which $71,345 has been deposited in the bank. In addition, the company has written checks for $72,497, of which $71,162 has been processed by the bank. The bank statement reveals an ending balance of $12,457 and includes the following items not yet recorded by the company, bank service fees of $250, note receivable collected by the bank of $6,000, and interest earned on the account balance plus from the note of $820. After closer inspection, the company realizes that the bank incorrectly charged the company's account $700 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.) View transaction list Journal entry worksheet 1 2 Record the amounts that increase cash. Note: Enter debits before credits General Journal Debit Credit Date October 31 Record entry Clear entry View general Journal Journal entry worksheet Record the amounts that decrease cash. Note: Enter debits before credits. General Journal Debit Credit Date October 31 Record entry Clear entry View general Journal Prey 1 of 5 LEE Next