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 bank on July 31st but did not get recorded in the July 31st bank statement balance.
Check #354 in the amount of $575 and check # 365 in the amount of $1,500 were outstanding as of this bank statement.
An NSF check in the amount of $500 (written by J. Smith, a customer) was returned by the bank to the company in the July 31st bank statement.
A bank service charge in the amount of $50 was included in the July 31st bank statement.
Interest in the amount of $125 was deposited into our account by the bank.
The bank collected $1,000 from a customer (H. Doe) on our behalf as part of the lockbox service that we established with the bank.
The bank erroneously posted another company's check (i.e. withdrawal) in the amount of $5,000 to our account.
The bank erroneously posted another company's deposit into our account in the amount of $3,000.
After reconciling the bank statement, we noticed that a check that was written to pay for the current month's utilities in the amount of $250 was improperly recorded in our books as $520. (It was properly recorded in the bank statement as $250.)

Solutions

Expert Solution

SOLUTION FOR BANK RECONCILATION STATEMENT PART 1

BANK RECONCILATION STATEMENT

and JOURNAL ENTRIES PART 2

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

1.Consider the bank reconciliation: A format bank reconciliation is an internal control activity to safeguard cash....

1.Consider the bank reconciliation: A format bank reconciliation is an internal control activity to safeguard cash. How often should a bank reconciliation be performed? a.Twice a day b. Once a year, only if the tax accountant requests it be done c.One a month when the bank statement is received 2. Control activities include: a. Physical controls and document procedures b. Segregation of duties and establishment of responsibilities c.Independent internal verification and human resource controls d.All three answer choices combined define...

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...

The bank reconciliation is an important part of the system of internal controls. True or False?

Prepare bank reconciliation and related entries. AP The bank portion of the bank reconciliation for Katsaris...

Prepare bank reconciliation and related entries. AP The bank portion of the bank reconciliation for Katsaris Company at August 31, 2017, was as follows: KATSARIS COMPANYBank Reconciliation August 31, 2017 Cash balance per bank $13,229 Add: Deposits in transit 2,350 15,579 Less: Outstanding cheques #4451 $1,740 #4460 549 #4461 723 #4462 1,840 #4464 620 5,472 Adjusted cash balance per bank $10,107 The unadjusted cash balance per books on September 30, 2017, was $10,228. The September bank statement showed the following:...

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

GENERAL COMPANY Bank Reconciliation: 1st National Bank September 30, 2018 1 Balance per bank 28,375 2...

GENERAL COMPANY Bank Reconciliation: 1st National Bank September 30, 2018 1 Balance per bank 28,375 2 Deposits in transit 29-Sep 4,500 30-Sep 1,525 6,025 34,400 3 Outstanding Check 31-Aug 2,200 26-Sep 675 27-Sep 850 29-Sep 2,500 30-Sep 7,225 (13,450) 20,950 4 Customer note collected by the bank -3,000 5 Error: Check #1282, written on 26-Sep for 270 was erroneously charged by the bank as $720; bank was notified 2-Oct. 450 6 Balance per books 18,400 Assume these facts: • The...

Problem 8-05A a-b (Part Level Submission) (Video) The bank portion of the bank reconciliation for Vaughn...

Problem 8-05A a-b (Part Level Submission) (Video) The bank portion of the bank reconciliation for Vaughn Company at November 30, 2020, was as follows. Vaughn COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank $14,767.90 Add: Deposits in transit 2,530.20 17,298.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,054.50 6,306.30 Adjusted cash balance per bank $10,991.80 The adjusted cash balance per bank agreed with the cash balance per books...

Which of the following can be done as part of the bank reconciliation process? Select all...

Which of the following can be done as part of the bank reconciliation process? Select all that apply. Select one or more: A. You can open and edit transactions listed on the reconciliation screen. B. Service charges and interest income not previously recorded can be entered. C. Transactions dated subsequent to the bank statement ending date can be hidden from view. D. New banking transactions (checks and deposits for example) can be entered.

Preparing a bank reconciliation

Question Preparing a bank reconciliationThe Cash account of Guard Dog Security Systems reported a balance of $2,540 at December 31, 2018. There were outstanding checks totaling $400 and a December 31 deposit in transit of $100. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $3,340. Included in the bank balance was a collection of $510 on account from Brendan Ballou, a Guard Dog customer who pays the bank directly. The bank statement also...

Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank...

Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,185 Adjustments: Outstanding Check No.1067 $575 Outstanding Check No.1106 470 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Deposit of June 30 not recorded by bank (6,600) Total adjustments (3,595) Adjusted balance $12,590 Cash balance according to company’s records $8,985 Adjustments: Proceeds of note collected by bank: Face value $6,000...

Subjects