Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
The following information was available to reconcile Montrose Company s book balance of Cash with its bank statement balance as of October 3 1 ,
The following information was available to reconcile Montrose Companys book balance of Cash with its bank statement balance as of October : After all posting was completed on October the companys Cash account had a $ debit balance but its bank statement showed a $ balance. Cheques # for $ and # for $ were outstanding on the September bank reconciliation. Cheque # was returned with the October cancelled cheques, but cheque # was not. It was also found that cheque # for $ and cheque # for $ both written in October, were not among the cancelled cheques returned with the statement. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque # for the October rent was correctly written for $ but was erroneously entered in the accounting records as $ A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $ A $ bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement. A debit memo for $ listed a $ NSF cheque plus a $ NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement. Also enclosed with the statement was a $ debit memo for bank services. It had not been recorded because no previous notification had been received. The October cash receipts, $ were placed in the banks night depository after banking hours on that date and this amount did not appear on the bank statement. Required: Prepare a bank reconciliation for the company as of October Prepare the General Journal entries necessary to bring the companys book balance of Cash into agreement with the reconciled balance.
The following information was available to reconcile Montrose Companys book balance of Cash with its bank statement balance as of October :
After all posting was completed on October the companys Cash account had a $ debit balance but its bank statement showed a $ balance.
Cheques # for $ and # for $ were outstanding on the September bank reconciliation. Cheque # was returned with the October cancelled cheques, but cheque # was not. It was also found that cheque # for $ and cheque # for $ both written in October, were not among the cancelled cheques returned with the statement.
In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque # for the October rent was correctly written for $ but was erroneously entered in the accounting records as $
A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $ A $ bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement.
A debit memo for $ listed a $ NSF cheque plus a $ NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement.
Also enclosed with the statement was a $ debit memo for bank services. It had not been recorded because no previous notification had been received.
The October cash receipts, $ were placed in the banks night depository after banking hours on that date and this amount did not appear on the bank statement.
Required:
Prepare a bank reconciliation for the company as of October
Prepare the General Journal entries necessary to bring the companys book balance of Cash into agreement with the reconciled balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started