Question

Janie Corporation's bank statement for October reports an ending balance of $24,381, whereas Janie's cash account shows a balance of 324,025 on Catober 31 . The following additional information is avaiable: a. A $855 deposit made on October 31 was not recorded by the bank unbi November. b. At the end of October, outstanding checks total $1,222. c. The bank statement shows bank service charges of $125 not yet recorded by the company. d. The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank. e. A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds. Requiredt 1. Prepare the October bank reconcilation for Janie Corporation. Cash balance from banl statement $___

Answer 1

To prepare the October bank reconciliation for Janie Corporation, we compare the cash balance on the bank statement and Janie's cash account. We add the deposit that was not recorded, subtract the outstanding checks and bank service charges, and find a difference of $299,136, which is added to the bank statement's ending balance.

Step-by-step explanation:

To prepare the October bank reconciliation for Janie Corporation, we need to compare the cash balance on the bank statement and Janie's cash account.

Starting with the bank statement's ending balance of $24,381, we add the deposit that was not recorded by the bank ($855) and subtract the outstanding checks ($1,222). We also subtract the bank service charges ($125). This gives us a calculated cash balance on the bank statement of $24,381 + $855 - $1,222 - $125 = $24,889.

Comparing this with Janie's cash account balance of $324,025, we find a difference of $324,025 - $24,889 = $299,136. Therefore, the cash balance from the bank statement should be $24,889.

Answer 2

To prepare the October bank reconciliation for Janie Corporation, follow these steps: starting with the bank statement balance of $24,381, adjust for deposits in transit, outstanding checks, bank service charges, and erroneous check recording, as well as a returned check for insufficient funds. The adjusted cash balance from the bank statement is $24,607.

Step-by-step explanation:

To prepare the October bank reconciliation for Janie Corporation, we need to compare the company's cash account balance with the bank statement ending balance and make adjustments for any differences. Here are the steps:

Starting with the bank statement balance of $24,381,

we add the deposit in transit of $855 (which was not recorded by the bank until November),

we deduct the outstanding checks totaling $1,222 (checks issued by the company but not yet cleared by the bank),

we deduct the bank service charges of $125 not yet recorded by the company,

we add the amount of the erroneously recorded check ($973) since it was processed correctly by the bank, but should be adjusted in the company's records,

and finally, we deduct the amount of the returned check from the customer ($480) for insufficient funds.

After performing these calculations, the adjusted cash balance from the bank statement is $24,607.

Cash balance from bank statement: $24,607