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The cash account of Abstract, Inc. disclosed a balance of $16,348.82 on October 31. The bank statement as of October 31 showed a balance of
The cash account of Abstract, Inc. disclosed a balance of $16,348.82 on October 31. The bank statement as of October 31 showed a balance of $19,711.75. Upon comparing the statement with cash records, the following facts were developed a) Abstract's account was charged on October 26 for a customer's uncollectible check amounting to $1,927 b) A two-month, 8%, $1,350 customer's note dated August 25, discounted on October 12, was dishonored October 26 and the bank charged Abstract $1,374.91, which included a protest fee of $6.91 A customer's check for $580 was entered as $530 by both the depositor and the bank but was later corrected by the bank d) Check no. 661 for $1,838.00 was entered in the cash disbursements journal at $1,383.00 and check no. 652 for $47.50 was entered as $475.00. The company uses the voucher system (accounts payable). Bank service charges for October, $54.81. Bank collected a note for Abstract and deposited $1,874.20 (1,800 principal and 74.20 interest) to Abstract's account. The bank charged a collection fee of $15. No entry on books. g) Receipts of October 29 for $5,450 were deposited on November 1. h) October outstanding checks, $10,287.95. Prepare the bank reconciliation and any necessary journal entries
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