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Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following:

Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following:

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11MC
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Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following: 21. $ Of the total checks written during the month, what amount should be deducted from the bank balance during reconciling the bank account? Of the cash receipts, what amount should be added to the bank balance during 22. 2$ reconciling the bank асcount? 23. When performing the bank reconciliation, how should the company treat check 1154? A. add $500 to the company cash account B. subtract $500 from company cash account C. add $500 to bank statement balance D. subtract $500 from bank statement balance 24. 2$ The total amount of subtractions from the company cash account during the reconciliation (DO NOT INCLUDE THE ADDITIONS; also do not make the answer negative): 25. 2$ What is the company's cash balance after the reconciliation?
Transcribed Image Text:Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following: 21. $ Of the total checks written during the month, what amount should be deducted from the bank balance during reconciling the bank account? Of the cash receipts, what amount should be added to the bank balance during 22. 2$ reconciling the bank асcount? 23. When performing the bank reconciliation, how should the company treat check 1154? A. add $500 to the company cash account B. subtract $500 from company cash account C. add $500 to bank statement balance D. subtract $500 from bank statement balance 24. 2$ The total amount of subtractions from the company cash account during the reconciliation (DO NOT INCLUDE THE ADDITIONS; also do not make the answer negative): 25. 2$ What is the company's cash balance after the reconciliation?
Use the following to answer questions 21 - 25 J&T Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks Date Amount No. Date Amount 3-Oct S21,200 1151 4-Oct S3,000 2,890 |1152 6-Oct 6,000 17-Oct 15,0001153 15-Oct 18,400 10-Oct 24-Oct 14,200 1154 16-Oct 6,400 Cash receipts 10/26 -10/31 9,900 |1155 20-Oct 1,000 $63,190 1156 22-Oct 3,000 1157 29-Oct 14,000 S51,800 Balance on October 1S22,200 Receipts 63,190 Disbursements 51,800 Balance on October 31 S33,590 Information from October's bank statement and company records reveals the following additional information: a) The ending cash balance shown on the bank statement is $39,519. b) Cash receipts of $9,900 from 10/26–10/31 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $1,200 that did not clear the bank (NSF check). e) Check 1154 was written for $6,900 for equipment purchased in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for October rent was made on October 4 for $1,500. g) J&T's checking account earns interest based on the average daily balance. The amount of interest earned for October is $6. h) Last year, one of J&T's customers requested their A/R be converted to a Note Receivable (they owed $2,000). On October 29th, the customer paid $2,050 ($2,000 note amount plus $50 interest) directly to the bank in payment for the amount they owed the company. i) The bank charged the following service fees: $25 for NSF check, $1 for automatic withdrawal for rent payment, and $1 for collection of the loan amount from the customer. Prepare a bank reconciliation for October 31, 20XE to aggiat anau
Transcribed Image Text:Use the following to answer questions 21 - 25 J&T Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks Date Amount No. Date Amount 3-Oct S21,200 1151 4-Oct S3,000 2,890 |1152 6-Oct 6,000 17-Oct 15,0001153 15-Oct 18,400 10-Oct 24-Oct 14,200 1154 16-Oct 6,400 Cash receipts 10/26 -10/31 9,900 |1155 20-Oct 1,000 $63,190 1156 22-Oct 3,000 1157 29-Oct 14,000 S51,800 Balance on October 1S22,200 Receipts 63,190 Disbursements 51,800 Balance on October 31 S33,590 Information from October's bank statement and company records reveals the following additional information: a) The ending cash balance shown on the bank statement is $39,519. b) Cash receipts of $9,900 from 10/26–10/31 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $1,200 that did not clear the bank (NSF check). e) Check 1154 was written for $6,900 for equipment purchased in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for October rent was made on October 4 for $1,500. g) J&T's checking account earns interest based on the average daily balance. The amount of interest earned for October is $6. h) Last year, one of J&T's customers requested their A/R be converted to a Note Receivable (they owed $2,000). On October 29th, the customer paid $2,050 ($2,000 note amount plus $50 interest) directly to the bank in payment for the amount they owed the company. i) The bank charged the following service fees: $25 for NSF check, $1 for automatic withdrawal for rent payment, and $1 for collection of the loan amount from the customer. Prepare a bank reconciliation for October 31, 20XE to aggiat anau
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