The Fitzgerald Company maintains a checking account at the Bank of the North. Th

Question

The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:

The company’s general ledger cash (checking) account had a balance of $42,677 at the end of October. Deposits outstanding totaled $4,294, and all checks written by the company were processed by the bank except for those totaling $5,690. In addition, a check for $570 for the purchase of office furniture was incorrectly recorded by the company as a $57 disbursement. The bank correctly processed the check during October.

          

Prepare the necessary journal entries at the end of October to adjust the general ledger cash account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along with canceled checks on the last day of each month. The October 31, 2016, bank statement included the following information:

Explanation / Answer

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The Fitzgerald Company Bank Reconciliation As of October 31, 2016 Company's book Bank balance Balance as per book   $ 42,677 Balance as per bank $ 37,300 Add Add Deposit in transit   4294 Deduct 4294 NSF Check 1670 Deductions Bank service charges   $     420 Outstanding checks   5690 Loan repayment (4,170-470) $ 3,700 $    5,690 Interest on loan $     470 Clerical error ($570-$57) 513 6773 Correct cash balance $ 35,904 Adjusted bank balance $ 35,904

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