Question : 160. The Fitzgerald Company maintains a checking account at the Bank : 1412699

160.

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 $42,544 at the end of October. Deposits outstanding totaled $4,224, and all checks written by the company were processed by the bank except for those totaling $5,620. In addition, a check for $500 for the purchase of office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October.

Required:

1. Prepare a bank reconciliation for the month of October.
2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account.

.

161.

The petty cash fund of Western Glass Company contained the following items on November 30, 2016:

 

The petty cash fund was established on November 1, 2016, with a transfer of $250 from cash to the petty cash account.

Required:

Prepare the journal entries to establish the petty cash account and to replenish the fund at the end of November.

162.

Guido Properties owes First State Bank $60 million under a 7% note with two years remaining to maturity. Due to financial difficulties of Guido, the previous year's interest ($4.2 million) was not received. The bank agrees to settle the note receivable and accrued interest receivable in exchange for land having a fair value of $44 million.

Required: 

Compute the loss on troubled debt restructuring that the bank would record.

$20.2 million