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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

BANK RECONCILIATION AND RELATED JOURNAL ENTRIES The book balance in the checking account of Johnson Enterprises as of October 31 is $5,718. The bank statement shows an ending balance of $5,217. The following information is discovered by (1) comparing last month’s deposits in transit and outstanding checks with this month’s bank statement, (2) comparing deposits and checks written per books and per bank in the current month, and (3) noting service charges and other debit and credit memos shown on the bank statement.

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*Funds were withdrawn by Enoch Johnson for personal use.

Required

  1. 1. Prepare a bank reconciliation as of October 31, 20--.
  2. 2. Prepare the required journal entries.

1.

To determine

Prepare bank reconciliation as of October 31.

Explanation

Bank reconciliation:

Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Prepare bank reconciliation as of October 31.

Enterprise J
Bank Reconciliation
October 31
ParticularsAmount in $Amount in $
Balance per bank statement, October 31 5,217.00
 Add: Deposits in transit 
              October 29210.00
              October 30406.00616.00
  5,833.00
 Less: Outstanding checks  
No...

2.

To determine

Prepare journal entry to record the given bank transactions.

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