Question

In: Accounting

Question 2 Bank Reconciliation The Duluth Manufacturing Company has a business chequing account at the Bank...

Question 2 Bank Reconciliation

The Duluth Manufacturing Company has a business chequing account at the Bank of Ontario. The bank provides a bank statement and cancelled cheques once a month. The cut-off date is the last day of the month. The bank statement for the month of May is summarized as follows:

Balance, May 1, 2016 $32,120

Deposits 82,140

Cheques processed (78,433)

Service charges (80)

NSF cheque from customer (2,187)

Note payment collected by bank (includes $120 interest) 1,120

Balance May 31, 2016 $34,680

The company’s general ledger cash account has a balance of $35,276 at the end of May. A review of the company records and the bank statement reveals the following:

1. Cash receipts not yet deposited total $2,965.

2. A deposit of $1,020 was made on May 31 that will not be credited to the company’s account until June.

3. All cheques written in April have been processed by the bank. Cheques written in May that have not been processed by the bank total $5,536.

4. A cheque written for $1,790 was incorrectly recorded by the company as a $790 disbursement. The original Accounts Payable was $1,790.

Required:

a. Prepare the bank reconciliation for the month of May.

b. Prepare the journal entries required to adjust the general ledger cash account to actual.

Expert Solution

ekkarill92 answered 7 months ago

When the bank reconciliation has differing amounts of the company cash account and the bank statement...

When the bank reconciliation has differing amounts of the company cash account and the bank statement what must you do

Question What is bank reconciliation? What is the objectives of the bank reconciliation statement?

Items on a Bank Reconciliation Assume that a company is preparing a bank reconciliation for the...

Items on a Bank Reconciliation Assume that a company is preparing a bank reconciliation for the month of June. It reconciles the bank balance and the book balance to the correct balance. For each of the following items, indicate whether the item is an addition to the bank balance, an addition to the book balance, a deduction from the bank balance, a deduction from the book balance, or would not appear on the June reconciliation. Also, choose Yes or No...

A bank reconciliation is a. A formal financial statement that list all of the bank account...

A bank reconciliation is a. A formal financial statement that list all of the bank account balances of an enterprise. b. A merger of two banks that previously were competitors. c. A statement sent by the bank to depositor on a monthly basis. d. A schedule that accounts for the differences between an enterprise’s cash balance as shown on its bank statement and the cash balance shown in its general ledger.

Why is it important to prepare a bank reconciliation for each bank account at the end...

Why is it important to prepare a bank reconciliation for each bank account at the end of the month b) Does it make sense for the same person who prepares the daily cash deposits for the company to also perform the monthly bank reconciliation (in your answer, be sure to name any specific internal control procedures that may be applicable)? c) Describe the different types of audit opinions.

(2.)Suppose the First National Bank of Duluth has $500.00 million in total assets with an average...

(2.)Suppose the First National Bank of Duluth has $500.00 million in total assets with an average asset duration offive years. Assume that the bank’s liabilities are comprisedof $86.75 million of demand deposits and $163.75 million inbonds with a 4.00% coupon rate (which pays annually) and a fiveyear time-to-maturity. Further assume that currentmarket interest rates are at 9.00% per annum. (a.)(2 point) Calculate the duration of the bank’s bonds.

Conducting a Bank Reconciliation Note: Part 1 is the bank reconciliation itself and Part 2 is...

Conducting a Bank Reconciliation Note: Part 1 is the bank reconciliation itself and Part 2 is for the adjusting entries. Instructions: Using the information below, complete the bank reconciliation for both the "book" and the "bank" sides and create all necessary adjusting journal entries. Details: Cash balance per company's records as of July 31st was $66,955. Bank statement balance as of July 31st was $15,875. A deposit in the amount of $52,000 was deposited into the night depository of the...

The cash account shows a balance of IDR 450 million before reconciliation. The bank statement has...

The cash account shows a balance of IDR 450 million before reconciliation. The bank statement has not taken into account the IDR 23 million deposit made on the last day of the month concerned. The bank statement shows direct billing by the bank to customer A for IDR 9,400,000 and a check from customer B for IDR 3,200,000 returned as it is NSF. Checks from customer C for IDR 4,500,000 are recorded in the book worth IDR 5,400,000 and customer...

Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a...

Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared. Cheques #251 for $1,200 and #260...

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative...

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $20,300. Cash balance according to the bank statement at August 31, $21,600. Checks outstanding, $4,120. Deposit in transit, not recorded by bank, $3,310. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $50. a....