Why is it necessary to record journal entries after the bank reconciliation has been prepared?

Why is it necessary to record journal entries after the bank reconciliation has been prepared? Which side of the bank reconciliation requires journal entries?

Expert Solution

Step 1: Definition of the bank reconciliation statement

Bank reconciliation is a statement that shows the difference between a bank passbook and a company’s books. Bank reconciliation statement includes deposit, withdrawal, and other activities

Step 2: Necessary to record journal entries

The bank reconciliation is an accountant’s tool separate from the journals and ledgers. It does not account for transactions in the journal. All the items of the book side of the bank reconciliation requires journal entries because they are not recorded before the boan reconciliation statement. Hence, recording journal entris after the bank statement is necessary.

To get the transactions into the accounts, we must make journal entries and post to the ledger.

Sahil Dangi answered 2 years ago

Prepare the adjusting journal entries that Del Gato Clinic must record as a result of preparing the bank reconciliation.

Del Gato Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2017, its Cash account shows a $14,600 debit balance. Del Gato Clinic's June 30 bank statement shows $14,038 on deposit in the bank. a. Outstanding checks as of June 30 total $2,402. b. The June 30 bank statement lists a $45 service charge. c. Check No. 919, listed with the...

Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Final Question X...

Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Final Question X Instructions The cash account for American Medical Co. at April 30 indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $30,050. B. A deposit of $19,720, representing receipts of April 30, had been made...

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries:

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries: A man came into Cutting Edge on 31 March 2020 to pay for repairs to his mower which he will bring in later. He paid $2,500 cash. The mower was arranged to be delivered to Cutting Edge on 10 April, 2020.  Repair services of $6,250 were provided on 31 March 2020 but have not yet been recorded in the transactions. Payment has...

Question # 2 Prepare the necessary journal entries to record the following transactions relating to the...

Question # 2 Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds by Glendale Corp. Show calculations and round to the nearest dollar. March 1 Issued $200,000 (face value) 8% bonds for $218,040, including accrued interest. Interest is payable semi-annually on December 1 and June 1 with the bonds maturing 10 years from the previous December 1. The bonds are callable at 102. June 1 Paid semi-annual interest on the bonds. Use...

Bank reconciliation The company’s accounting intern has prepared the end-of-January bank reconciliation from the bank statement,...

Bank reconciliation The company’s accounting intern has prepared the end-of-January bank reconciliation from the bank statement, and is worried because the Adjusted Balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern. Murdstone Co. Bank Reconciliation January 31, 20Y5 1 Cash balance according to bank statement $23,557.98 2 Deduct deposit of May 31, not recorded by bank 12,125.25 3 $11,432.73 4 Add outstanding checks: 5 No. 124 $62.00 6 No....

Prepare a Bank Reconciliation Statement from the information provided and prepare adjusting Journal Entries.

Prepare a Bank Reconciliation Statement from the information provided and prepare adjusting Journal Entries.The information below relates to the Cash account in the ledger of Bramble Company.Balance September 1—$17,010; Cash deposited—$64,500.Balance September 30—$17,664; Checks written—$63,846.The September bank statement shows a balance of $16,682 on September 30 and the following memoranda.Credits DebitsCollection of $1,621 note plus interest $39 $1,660 NSF check: Richard Nance $555Interest earned on checking account $54 Safety deposit box rent $74At September 30, deposits in transit were $4,580,...

Preparing Bank reconciliation & any journal entries; The following information is for Neopolitan Ltd in July...

Preparing Bank reconciliation & any journal entries; The following information is for Neopolitan Ltd in July 1.Cash balance per bank, July 31, $10,670 2. Cash balance per general ledger cash account, July 31, $8,953 3. Bank Service Charge, $40 4. Deposits in Transit, $1,968 5. Electronic receipts from customers in payment of their accounts, $1,276, not previously recorded by the company 6. Outstanding cheques, $2,359 7. Cheque #373 was correctly written in the amount of $890 but was incorrectly recorded...

Record the journal entries for the company.

Question:(Cash Flow Hedge) Hart Golf Co. uses titanium to produce specialty drivers. Hart anticipates that it will need to purchase 200 ounces of titanium in November 2017 for clubs sold in advance of the spring and summer of 2018. However, if the price of titanium increases, this will increase the cost to produce the clubs, resulting in lower profit margins. To hedge the risk of increased titanium prices, on May 1, 2017, Hart entered into a titanium futures contract...

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of...

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Co.: March 1 Issued $2,000,000 face value Pitts Co. second mortgage, 8% bonds for $2,180,400, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Pitts Co. bonds. (Use straight-line amortization of any premium or...

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