Textbook Problem

Exercise 4-44 Bank Reconciliation OBJECTIVE a

Johnson Corporaljon’s bank statement for October reports an ending balance of $22,38L

whereas Johnson’s cash account shows a balance of $22,025 on October 31. The following additional informaLion is available:

a. A $855 deposit made on October 31 was not recorded by the bank until November. SHII'IHE HEM be At the end of October, out standing checks total $1,222.

b. The bank statement shows bank service charges of$125 not yet recorded by the company.

c. The company erroneously recorded as $913 a check that it had actually written for $31. It was correctly processed by the bank.

d. A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.

Required:

1. Prepare the October bank reconciliation for Johnson Corporation.

2. What amount will be reported as cash on the October 31 balance sheet?