Part ii. Prepare the journal entries resulting from the bank reconciliation
Q: Which of the following items is added to the “cash balance from bank statement” on a bank…
A: Deposits in transit: Deposit in transit means the money received by a company and recorded in the…
Q: The "Select Payments Included in This Deposit" se
A: The "Select Payments Included in This Deposit" section of the Bank Deposit form lists Payment…
Q: A) Prepare a bank reconciliation for Finac Company using the above information B) Journalize any…
A: The financial statement being prepared by the management or accountant after receiving the bank…
Q: An NSF check returned by the bank should be entered in the depositor's accounting records by a…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: The amount of the outstanding checks is included on the bank reconciliation as a(n)
A: BRS: Bank reconciliation statement is a report that summarizes the banking and business activity…
Q: In preparing a bank reconciliation, explain how you would do the reconciliation if the bank…
A: Bank reconciliation statement is a statement prepared to reconcile the balance as per bank statement…
Q: On a bank reconciliation, the adjusting entry to record collection of notes should be: dehit te
A: Notes recievable are claims against debt. These include a written promise made to pay money at some…
Q: Will journal entries be necessary based on the book or bank adjustments you discovered in the bank…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: bank reconciliation statement preparation
A: Option 1 is wrong because as per bank to book method of bank reconciliation, bank balance is…
Q: Debate the logic used in the following statement: “The person responsible for handling cash receipts…
A: It may be true that the person responsible for handling cash receipts is more familiar with the…
Q: The amount for the bank error will be recorded on the bank reconciliation statement on the ....
A: A bank reconciliation statement is prepared to match the balance of cash in the books of company…
Q: describe the structure of a bank bill. In your explanation, clearly distinguish the roles of the…
A: Introduction: A bill of exchange is a written document that obligates one party to pay another a…
Q: From page 4-4 of the VLN, in a bank reconciliation how are outstanding deposits treated? A. Add to…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: The journal entries for a bank reconciliation . are taken from the "balance per bank" section only.…
A: A bank reconciliation is a statement that is prepared to match the bank balance as per the books of…
Q: choose the internal sources of audit evidence. a.
A: Audit evidence: The audit evidence is the evidence gathered by the auditor to express an opinion on…
Q: You have been asked to write the Bank Reconciliation
A: Bank Reconciliation:- A bank reconciliation is that the method of matching the balances in an…
Q: Explain the treatment of certified check for bank reconciliation purposes
A: Solution A certified check is a check for which issuing bank guarantees the availability of cash in…
Q: For each of the items indicate whether its amount affects the bank or book side of a bank…
A: A bank reconciliation statement aligns an organization's bank account with its financial documents…
Q: Accompanying the bank statement was a debit memo for bank service charges. On the bank…
A: Bank service charge: Bank service charge is charges levied by the bank for the services provided or…
Q: Explain the purpose of performing bank reconciliation. b. State possible reasons why there is an out…
A: Bank reconciliation statement: It is the process performed by the firm to ensure the balance between…
Q: Define bank reconciliation.
A: Bank reconciliation are done to determine the actual cash balance available both on hand and bank at…
Q: Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following:
A: BRS stands for Bank Reconciliation Statement which is an important part of Accounting. BRS in simple…
Q: . Describe three reasons that a Bank Reconciliation Statement should be done
A: Bank Reconciliation Statement: Bank reconciliation statements describe banking and business…
Q: Indicate how each of the following items would be included on a bank reconciliation.
A: A bank reconciliation statement is a summary of banking and business activity that reconciles an…
Q: How is responsible for preparing the bank reconciliation and what is the pur Pose of it:
A: Bank Reconciliation Statement - A statement showing the business activity of the company to…
Q: What is the adjusting entry for Bank Reconciliation: Debit Memo- Cost of Checkbook
A: A debit memo issued to customer for cost of checkbook will reduce the account balance of the…
Q: Examine the cash receipts journal in the accounting system and compare the amounts received to the…
A: Audit procedure: Audit procedures represent all the methods and processes used by auditors to…
Q: 1. Prepare the journal entry to establish the petty cash fund.
A: Journal Entries are as follows:
Q: na bank reconciliation, an outstanding check is O A. deducted from the book balance. O B. deducted…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Using the following information, prepare a bank reconciliation.
A: “Since you have posted multiple questions, we will be answering the first question. In order to…
Q: Which of the following items must be added to the cash balance per ledger in preparing a bank…
A: The statement prepared to find out the discrepancies if any, in the balances of the cash as per book…
Q: ACTIVITY 2 BANK RECONCILIATION PROBLEM: Prepare a bank reconciliation statement using the adjusted…
A: Bank Reconciliation Statement(BRS) So for preparing BRS Statement we must; 1) Compare the Balances…
Q: What is the adjusting entry of Bank Reconciliation : Credit Memo- Proceed Bank Loan
A: Credit memo - proceed bank loan : A bank's credit memo is defined as the item where the bank account…
Q: From page 4-4 of the VLN, in a bank reconciliation how is a NSF check treated? A. Add to the company…
A: Bank Reconciliation: It is a statement where the balance as per the cash book gets reconciled with…
Q: A journal entry would need to be made for which of the following adjustments on a…
A: Bank reconciliation statement: A bank reconciliation statement (BRS) is a statement which is used to…
Q: In a bank reconciliation, an outstanding check isa. deducted from the book balance.b. deducted from…
A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…
Q: Using the following information and prepare a bank reconciliation.
A: Bank reconciliation refers to the method used by the company to match the bank statement as well as…
Q: method of preparing bank reconciliation wherein the bank balance is adjusted to agree with the book…
A: A bank reconciliation statement is prepared by management at a certain time period. It is used to…
Q: Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance…
A: 1. Bank reconciliation using: a. Bank to book method
Q: 1. Prepare a bank reconciliation 2. Prepare the necessary adjusting journal entries.
A: Bank reconciliation statement is the statement which is prepared with the aim and purpose in order…
Q: The following reconciling items are applicable to the bank reconciliation for Forde Co.Indicate how…
A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…
Q: In a bank reconciliation, an EFT cash payment isa. deducted from the bank balance.b. added to the…
A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…
Q: When journal entries for items in the Ledger Balance of Cash section of the bank reconciliation are…
A: Bank Reconciliation statement is prepared to match the cash balances of cash book and pass book.
Q: Explain the need and importance of the bank reconciliation .
A: Bank reconciliation statement (BRS) is a summary statement indicating the reconciliation entries of…
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- Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
- The following data represents information necessary to assist in preparing the July 31, 2019 bank reconciliation for Domore Company. On July 31, the bank balance was $5,353. The bank statement indicated a deduction of $20 for all bank service charges. A customer deposited $1,210 directly into the bank account to settle an outstanding accounts receivable bill. Cheque #566 for $800 and cheque #573 for $560 have been recorded in the company ledger but did not appear on the bank statement. A customer paid an amount of $4,570 to Domore Company on July 31 but the deposit did not appear on the bank statement. The accounting clerk made an error and recorded a $150 cheque as $1,500. The cheque was written to pay an outstanding accounts payable account. Cheque #8603 for $170 was deducted from Domore Company's account by the bank. This cheque was not written by Domore Company and needs to be reversed by the bank. The bank included an NSF cheque in the amount of $490 relating to a…Given the following information to reconcile GCompany’s cash book balance with its bank statement balance as of July 31, 2021: a. Cheques #296 for $1,334 and #307 for $12,754 were outstanding on the September 30 bank reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written in July, were not among the cancelled cheques returned with the statement. b. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque #320 for the July rent was correctly written for $4,090 but was erroneously entered in the accounting records as $4,900. c. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been received. d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a…At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at December 31, using the following supplementary information: (iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account (i) The December 31 bank statement showed the following checks and deposits. Bank Statement by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in…
- On January 1, 2021, Rica Company received its December 2020 bank statement. However, the closing balance of the account was unreadable. Attempts to contact the bank after hours did not secure the desired information. A bank reconciliation is prepared from the following available information for December 2020: December 31, 2020 book balance, P1,460,000 Note collected by bank, P100,000 Interest earned on note, P10,000 NSF check of customer, P130,000 Bank service charge on NSF check, P2,000 Other bank service charges, P3,000 Outstanding checks, P202,000 Deposit of December 31, 2020 placed in night depository, P85,000 Check issued by Erick Company charged to Rica Company’s account, P20,000 What was the cash balance per bank statement?1) Prepare a bank reconciliation dated December 31, 2020, for Welcome Inc. based on the following information. Balance per bank statement is $21,200.68. Balance per books is $20,559.40. The December bank statement indicated a service charge of $35. Cheque #1169 for $410.50 and cheque #1183 for $2,150.00 were not returned with the bank statement. The bank had not received a deposit in transit of $3,443.22 when the bank statement was generated. A bank debit memo indicated an NSF cheque written by Bill Broke to Welcome Inc. on December 11, 2020, for $169. A bank credit memo indicated a bank collection of $1,700 and interest revenue of $28 on December 15, 2020.XYZ company is closing its books and must prepare a bank reconciliation for the following items. a. Bank statement contains an ending balance of P300,000 on February 28, 2018, whereas the company's ledger shows an ending balance of P260,900 b. Bank statement contains a P100 service charge for operating the account. c. Bank statement contains interest income of P20 XYZ issued checks of P50,000 that have not yet been cleared by the bank XYZ deposited P20,000 but this did not appear on the bank statement. d. A check for the amount of P470 issued to the office supplier was misreported in the cash payment journal as P370. e. A note receivable of P9,800 was collected by the bank. f. A check of P520 deposited by the company has been charged back as NSF.