Answered step by step
Verified Expert Solution
Link Copied!

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 31, 2023: a. After

image text in transcribed
image text in transcribed
image text in transcribed
The following information was available to reconcile Montrose Company's book balance of Cash with its bank statement balance as of October 31, 2023: a. After all posting was completed on October 31 , the company's Cash occount had a $17,663 debit balance but its bank statement showed a $39,304 balance. b. Cheques $296 for $1,788 and $307 for $17,093 were outstanding on the September 30 bank reconciliation. Cheque $307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $1,197 and cheque $321 for $2,682, both written in October, were not among the cancelled cheques returned with the statement. c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque $320 for the October rent was correctly written for $8,090 but was erroneously enterech in the accounting records as $8,720. d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer. payment for $22,463. A $161 bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement. e. A debit memo for $4,362 listed a $4,297 NSF cheque plus a $65 NSF charge. The cheque had been received from a customer. Jefferson Tyler. Montrose had not recorded this bounced cheque before recelving the statement. f. Also enclosed with the statement was a $98 debit memo for bank services. It had not been recorded because no previous notification had been recelved. 9. The October 31 cash receipts, $2,498, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the bank statement. Required: 1. Prepare a bank reconciliation for the company as of October 31,2023 . 2. Prepare the General Journal entries necessary to bring the company's book balance of Cash into agreement with the reconciled balance. Journal entry worksheet .3.4 Record the collection of note less collection fee. Note: Enter debits before credits. 2. Prepare the General Journal entries necessary to bring the company's book balance balance. 1 Record the collection of note less collection fee. 2 Record the NSF cheque. 3 Record the bank service charges. 4 Record to correct error in Cheque \#320. Note: = journal entry has been entered

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

Social Media Audit Measure For Impact

Authors: Urs E. Gattiker

2013 Edition

1461436028, 978-1461436027

More Books

Students also viewed these Accounting questions

Question

How does the concept of hegemony relate to culture?

Answered: 1 week ago

Question

I receive useful feedback about my performance.

Answered: 1 week ago

Question

I am encouraged to offer opinions/suggestions.

Answered: 1 week ago