Problem 4-2B (Algo) Prepare the bank reconciliation and record cash adjustments (LO4-5) On October 31,...

90.2K

Verified Solution

Question

Accounting

imageimageimage Problem 4-2B (Algo) Prepare the bank reconciliation and record cash adjustments (LO4-5) On October 31, 2024, the bank statement for the cash account of Goldfeather Video shows a balance of $12,660, while the company's records show a cash balance of $12,306. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks are $1,205. b. The October 31 cash receipts of $760 are not deposited in the bank until November 2 . c. The EFT payment for utilities of $132 is correctly recorded by the bank but is recorded by Goldfeather as a disbursement of $213. d. In accordance with prior authorization, the bank withdraws $645 directly from the account as payment on a note payable. The interest portion of that payment is $45 and the principal portion is $600. Goldfeather has not recorded the direct withdrawal. e. Bank service fees of $19 are listed on the bank statement. f. A deposit of $562 is recorded by the bank on October 13, but it did not belong to Goldfeather. The deposit should have been made to the account of Hollybuster Video, a separate company. g. The bank statement includes a charge of $70 for an NSF check from a customer. The check is returned with the bank statement, and the company will seek payment from the customer. Required: 1. Prepare a bank reconciliation for the Goldfeather checking account on October 31, 2024. 2. Record the necessary cash adjustments. Note: Enter debits before credits. Record the amounts that decrease cash. Enter debits before credits

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students