Johnson Corporation's bank statement for October reports an ending balance of $22,381, whereas Johnson's cash account shows a balance of $22,025 on October 31. The following additional information is available: A $855 deposit made on October 31 was not recorded by the bank until November. At the end of October, outstanding checks total $1,222. The bank statement shows bank service charges of $125 not yet recorded by the company. The company erroneously recorded as $973 a check that it had actually written for $379. It was correctly processed by the bank. A $480 check from a customer, deposited by the company on October 29, was returned with the bank statement for lack of funds.

Required:
Prepare the October bank reconciliation for Johnson Corporation.

The October bank reconciliation for Johnson Corporation is prepared below

Explanation:

Johnson Corporation  Bank Reconciliation Schedule  Oct-31

Cash Balance from Bank Statement                          $22,381

Add:  Deposit in Transit                                $855

Less: Outstanding Checks                              $1,222

Adjusted Cash Balance                                           $22,014

Cash Balance from Company records                          $22,025

Add:  Error in recording check ($973- $379)         $594

Less: Service Charge & NSF Check ($125 + $480)  $605  

Adjusted Cash Balance                                                   $22,014

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"