Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The bank statement and cash activity information for the month of October for Bloom Inc. is provided below Marcus Bank Statement Balance at9/30/17: $39,782.25 Withdrawals

image text in transcribed
image text in transcribed
The bank statement and cash activity information for the month of October for Bloom Inc. is provided below Marcus Bank Statement Balance at9/30/17: $39,782.25 Withdrawals Check Number 3004 3011 EFT 3012 3019 3021 Date Amount Amount 2-Oct 5-Oct 1-Oct 2-Oct 6-Oct 10-Oct $874.50 $2,382.30 $206.40 $808.10 S608.00 $456.60 S539.00 S1,089.10 $25.00 $924.00 $390.30 S3,000.00 $7,000.00 S3,685.20 1,900.20 $840.00 $234.40 $742.20 9-Oct 10-Oct 15-Oct 17-Oct 20-Oct 20-Oct 26-Oct 28-Oct 30-Oct 30-Oct 31-Oct 15-Oct 17-Oct 22-Oct 23-Oct 27-Oct (Interest 30-Oct 3024 3017 $467.70 $148.00 $85.00 $720.00 3028 3025 NSF Bloom Inc. General Ledger Balance at 9/30/17: $41,928.15 Withdrawals Check Number Date Amount Amount 7-Oct 9-Oct 10-Oct 12-Oct 16-Oct 18-Oct 19-Oct 24-Oct 24-Oct 25-Oct $2,382.30 808.10 $982.80 S680.00 S1,089.10 539.00 $390.30 $890.80 $924.00 3-Oct 3019 3020 3021 3017 3024 3025 3027 3028 8-Oct 14-Oct 15-Oct 20-Oct 29-Oct 29-Oct 30-Oct 1,900.20 $840.00 $234.40 $742.20 S1,245.00 $467.70 $148.00 $720.00 1,509.50 S528.00 Your analysis of the bank statement and company records revealed the following additional information: 1. Outstanding checks at 9/30/17 per Bloom Inc. were: Check Number Amount 3002 3004 3006 3009 3011 3012 $123.90 $289.70 S158.40 S642.70 $874.50 S206.40 2. A monthly EFT deduction of $2,382.30 was made for an insurance payment. . Marcus Bank deducted Bloom Inc.'s monthly mortgage payment directly via EFT from Bloom's bank account for an amount of $7,000.00, of which interest is $800.00 Required: 1. Determine the October 31 ending cash balance per the bank. 2. Determine the October 31s ending cash balance per the books. 3. Prepare the reconciliations from both the Bloom's books and the bank statement to the correct cash balance at October 31. Assume any errors were made by the bank 4. Prepare the adjusting journal entries necessary at October 31, 2017, and explain any discrepancies found that do not require an adjusting entry

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_2

Step: 3

blur-text-image_3

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

The Politics Of Public Management The HRDC Audit Of Grants And Contributions

Authors: David A. Good

2nd Edition

0802085873, 978-0802085870

More Books

Students also viewed these Accounting questions

Question

What is the preferred personality?

Answered: 1 week ago

Question

What is the relationship between humans?

Answered: 1 week ago