hassan corporations bank statement for october reports an ending balance of $18,096, whereas hassans cash…

hassan corporations bank statement for october reports an ending balance of $18,096, whereas hassans cash account shows a balance of $18,200 on october 31. the following additional information is available: a. a $805 deposit made on october 31 was not recorded by the bank until november. b. at the end of october, outstanding checks total $1,222. c. the bank statement shows bank service charges of $125 not yet recorded by the company. d. the company erroneously recorded as $873 a check that it had actually written for $379. it was correctly processed by the bank. e. a $480 check from a customer, deposited by the company on october 29, was returned with the bank statement for lack of funds. required: 1. prepare the october bank reconciliation for hassan corporation. hassan corporation bank reconciliation schedule october 31 cash balance from bank statement $18,096 add: deposit in transit $805 less: outstanding checks $1,222 adjusted cash balance $17,679 cash balance from company records $18,200 less: adjusted bank balance $125 error in recording check $384 nsf check $480 adjusted cash balance $17,211 feedback: 1. bank reconciliation is the process of comparing the accounting records and the bank statement, determining where discrepancies occur, and accounting for them. 2. what amount will be reported as cash on the october 31 balance sheet?

hassan corporations bank statement for october reports an ending balance of $18,096, whereas hassans cash account shows a balance of $18,200 on october 31. the following additional information is available: a. a $805 deposit made on october 31 was not recorded by the bank until november. b. at the end of october, outstanding checks total $1,222. c. the bank statement shows bank service charges of $125 not yet recorded by the company. d. the company erroneously recorded as $873 a check that it had actually written for $379. it was correctly processed by the bank. e. a $480 check from a customer, deposited by the company on october 29, was returned with the bank statement for lack of funds. required: 1. prepare the october bank reconciliation for hassan corporation. hassan corporation bank reconciliation schedule october 31 cash balance from bank statement $18,096 add: deposit in transit $805 less: outstanding checks $1,222 adjusted cash balance $17,679 cash balance from company records $18,200 less: adjusted bank balance $125 error in recording check $384 nsf check $480 adjusted cash balance $17,211 feedback: 1. bank reconciliation is the process of comparing the accounting records and the bank statement, determining where discrepancies occur, and accounting for them. 2. what amount will be reported as cash on the october 31 balance sheet?

Answer

Explanation:

Step1: Adjust bank statement balance

Add the deposit in transit ($805) and subtract the outstanding checks ($1,222) from the bank - statement balance ($18,066). $18066 + 805-1222=17649$

Step2: Adjust company - records balance

The bank service charge of $125 needs to be subtracted from the company's cash - account balance ($18,200). The error in recording the check: The company over - recorded the check amount by $973 - 379=594$ (it should be added back as it was over - subtracted). The NSF check of $480$ needs to be subtracted. $18200-125 + 594-480=18189$

Answer:

Particulars Amount
Cash balance from bank statement $18,066$
Add: Deposit in transit $805$
Less: Outstanding checks $1,222$
Adjusted cash balance (from bank statement) $17,649$
Cash balance from company records $18,200$
Less: Bank service charges $125$
Add: Error in recording check ($973 - 379$) $594$
Less: NSF check $480$
Adjusted cash balance (from company records) $18,189$
  1. The amount reported as cash on the October 31 balance sheet is the adjusted cash balance, which is $17,649$ (the adjusted balance from the bank statement side after all proper adjustments, as both adjusted balances should be equal in a correct bank reconciliation).