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The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the
The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2021, bank statement included the following information: Balance, October 1, 2021 Deposits Checks processed Service charges NSF checks Monthly loan payment deducted directly by bank from account (includes $400 in interest) Balance, October 31, 2021 $ 32,690 86,000 (75,200) (350) (1,600) (3,400) $ 38,140 The company's general ledger cash (checking) account had a balance of $42,544 at the end of October. Deposits outstanding totaled $4,224, and all checks written by the company were processed by the bank except for those totaling $5,620. In addition, a check for $500 for the purchase of office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Required: 1. Prepare a bank reconciliation for the month of October. 2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account. Required 1 Required 2 Prepare a bank reconciliation for the month of October. Fitzgerald Company's Bank Reconciliation Balance per bank statement Add: Deduct: Corrected cash balance Balance per books Deduct: Corrected cash balance View transaction list 1 > Record the correction of error in cash disbursement. 2 Record the credits to cash revealed by the bank reconciliation. Credit Note : = journal entry has been entered Record entry Clear entry View general journal Journal entry worksheet 1 2 > Record the correction of error in cash disbursement. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
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