On October a company general ledger shows a cash account balance of $ The company's cash receipts for the month total $ of which $ has been deposited in the bank. In addition, the company has written checks for $ of which $ has been processed by the bank.
The bank statement reveals an ending balance of $ and includes the following items not yet recorded by the company: bank service fees of $ note receivable collected by the bank of $ and interest earned on the note of $ After closer inspection, the company realizes that the bank incorrectly charged the company's account $ for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error.
Required:
Prepare a bank reconciliation to calculate the correct ending balance of cash on October
Record the necessary entries to adjust the balance for cash.
