On October 31, 2024, Gibson Companys general ledger shows a cash account balance of $8,412....
70.2K
Verified Solution
Link Copied!
Question
Accounting
On October 31, 2024, Gibson Companys general ledger shows a cash account balance of $8,412. The companys cash receipts for the month total $74,420, of which $71,320 has been deposited in the bank. In addition, the company has written checks for $72,482, of which $71,072 has been processed by the bank. The bank statement reveals an ending balance of $12,092 and includes the following items not yet recorded by Gibson: bank service fees of $200, note receivable collected by the bank of $5,500, and interest earned on the note of $570. After closer inspection, Gibson realizes that the bank incorrectly charged the companys account $500 for an automatic withdrawal that should have been charged to another customers account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
