Johnson Corporation’s bank statement for October reports an ending balance of $22,381,whereas Johnson’s cash account shows a balance of $22,025 on October 31. The following additionalinformation is available:a. A $855 deposit made on October 31 was not recorded by the bank until 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. Itwas correctly processed by the bank.e. A $480 check from a customer, deposited by the company on October 29, was returned withthe 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?
Johnson Corporation’s bank statement for October reports an ending balance of $22,381,whereas Johnson’s cash account shows a balance of $22,025 on October 31. The following additionalinformation is available:a. A $855 deposit made on October 31 was not recorded by the bank until 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. Itwas correctly processed by the bank.e. A $480 check from a customer, deposited by the company on October 29, was returned withthe 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?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1PB
Related questions
Question
| Johnson Corporation’s bank statement for October reports an ending balance of $22,381, whereas Johnson’s cash account shows a balance of $22,025 on October 31. The following additional information is available: a. A $855 deposit made on October 31 was not recorded by the bank until 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. Required: 1. Prepare the October bank reconciliation for Johnson Corporation. 2. What amount will be reported as cash on the October 31 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning