Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem ? Crot Rumpkin, Inc. (GP) needs to prepare a bank reconciliation for October. The information from GP's bank statement and shot summarized below. Bank

image text in transcribed
Problem ? Crot Rumpkin, Inc. (GP) needs to prepare a bank reconciliation for October. The information from GP's bank statement and shot summarized below. Bank Statement Cash Account Records Balance 101/20 $ 67,500 Cash Balance 10/1/20 $ 69,510 353,300 Checks Cleared (257,600) Checks Received 352,9311 NSF Checks (1,580) Debit Memes (2.595) Checks Written (260,407 Interest $2 Halance 10/31/20 $ 159,077 Cash Balance 10/31/20 $ 162,034 In addition to the series above, a review of the bank statement and cash account reveals the following There were two reconciling items at the end of September - deposit-in transit for 52,885 (it is included on the October bank statement and an outstanding check 1300 for $875. All checks were written for the correct amount during the periode GPL is correct if there is a difference). All checks received on this account relate to collection of accounts receivable and we deposited upon receipt Bank statement deposits include a credit memo for collection of a $1,684 account (customer sent payment directly to the bank) A $4,200 deposit on October 31" is on the books but does not appear on the bank statement. Debit Memes on the bank statement relate to a service charge for new checks ($175) and payment on a Note Payable (52,200 principal & $220 interest). The difference between checks written in October and checks cleared by the bank relates to six checks Check M13303 for $875 is included on the October bank statement o Checks 13363 for $1,875, 13362 for $362, 13348 for $1,042 and 13356 for $221 we not on the bank statement Check 13332 for the purchase of equipment is on the bank statement for $575 and on the books for $757. Use the information above to complete the bank reconciliation wlow Balance Bank Bac Bob Add Add I Subtract Subtract Adjusted Cash B Adjusted Cash Balance Use the accounts below to record the necessary adjustments resulting from the bank reconciliation here

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

More Books

Students also viewed these Accounting questions