The information below was used to prepare a bank reconciliation for Lorena Company at October 31:
• According to the bank statement,the bank balance as of October 31 was $8,765.According to the books,the cash balance as of October 31 is $9,557.
• Outstanding checks totaled $1,433.
• A customer's check for $999 was returned for NSF.
• October's service charge was $100.
• Bank collected $1,600 from a customer of Lorena Company in payment of a note receivable,including interest of $100.
• A new bookkeeper had problems posting checks and recording cash receipts:
• A deposit was made by the company for $900.This was the correct amount,however,the bank made a mistake and recorded the deposit as $890.
• Deposits made at month-end totaled $4,516; these were not shown on the bank statement.
Required:
1.Prepare the bank reconciliation at October 31.
2.Prepare the journal entries at October 31.

Question

The information below was used to prepare a bank reconciliation for Lorena Company at October 31:
• According to the bank statement,the bank balance as of October 31 was $8,765.According to the books,the cash balance as of October 31 is $9,557.
• Outstanding checks totaled $1,433.
• A customer's check for $999 was returned for NSF.
• October's service charge was $100.
• Bank collected $1,600 from a customer of Lorena Company in payment of a note receivable,including interest of $100.
• A new bookkeeper had problems posting checks and recording cash receipts:
  • A deposit was made by the company for $900.This was the correct amount,however,the bank made a mistake and recorded the deposit as $890.
• Deposits made at month-end totaled $4,516; these were not shown on the bank statement.
Required:
1.Prepare the bank reconciliation at October 31.
2.Prepare the journal entries at October 31.

Quizplus · Accepted Answer

The Answer of The information below was used to prepare a bank reconciliation for Lorena Company at October 31:
• According to the bank statement,the bank balance as of October 31 was $8,765.According to the books,the cash balance as of October 31 is $9,557.
• Outstanding checks totaled $1,433.
• A customer's check for $999 was returned for NSF.
• October's service charge was $100.
• Bank collected $1,600 from a customer of Lorena Company in payment of a note receivable,including interest of $100.
• A new bookkeeper had problems posting checks and recording cash receipts:
  • A deposit was made by the company for $900.This was the correct amount,however,the bank made a mistake and recorded the deposit as $890.
• Deposits made at month-end totaled $4,516; these were not shown on the bank statement.
Required:
1.Prepare the bank reconciliation at October 31.
2.Prepare the journal entries at October 31.

The Information Below Was Used to Prepare a Bank Reconciliation