When Ivanhoe Holdings Ltd Received Its Bank Statement For The Month Of October It Showed That The Company Had A Cash B 1 (29.51 KiB) Viewed 40 times
When Ivanhoe Holdings Ltd Received Its Bank Statement For The Month Of October It Showed That The Company Had A Cash B 2 (25.77 KiB) Viewed 40 times
When Ivanhoe Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $17,314 as at October 31. Ivanhoe's general ledger showed a cash balance of $19,400 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1 2 3. Bank service and credit card charges for the month were $7. Acheque, in the amount of $590, from one of Ivanhoe's customers that had been deposited during the last week of October was returned with the bank statement as "NSE Cheque #3421, which was a payment for utilities expenses, had been correctly written for $860 but had been incorrectly recorded in the general ledger as $680 Ivanhoe had written and mailed out cheques with a value of $2,850 that had not yet cleared the bank account During the month, the bank collected a $1,900 note receivable plus the outstanding interest of $171 on behalt of Ivanhoe. The interest had already been accrued. The cash receipts for October 31 amounted to $6,230 and had been deposited in the night drop slot at the bank on the evening of October 31. These were not reflected on the bank statement for October 5 Prepare the bank reconciliation at October 31. (List items that increase balance as per bank & books first
Prepare any journal entries required from the reconciliation (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Oct. 31 (To record EFT collections) (To record account receivable) (To adjust cheque #3421) 31
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!