Question
The XYZ Company had an ending cash balance at October 31, 2018 in its general ledger of $5,045.25. The balance per the bank statement at
The XYZ Company had an ending cash balance at October 31, 2018 in its general ledger of $5,045.25. The balance per the bank statement at October 31, 2018 was $5,500.35. The accountant has identified the following additional information related to the month of October 2018:
October 31 deposit not reflected on the October bank statement: | $554.00 | ||
Cheques still outstanding at October 31: | |||
From April: | $655.10 | ||
From October: | $865.60 | ||
Total service charges, per bank statement: | $45.50 | ||
XYZs account was incorrectly credited (added) | $300.00 | by the bank for a deposit made by ABC Company. | |
Cheque from customer B. Jordan, | $856.10 | , returned and marked non-sufficient funds. | |
Cheque for advertising expense, | $340.00 | , was incorrectly recorded in the books as $430. |
Required:
a) Prepare the bank reconciliation for XYZ Company at October 31, 2018. Round all the numbers to the 2nd decimal place.
b) Prepare any necessary journal entries resulting from XYZs October 31, 2018 bank reconciliation (entry descriptions not required). Round all the numbers to the 2nd decimal place.
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