1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as April 30 was $25,275. The errors listed above are the only two items that affect the book balance. 2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 v debited to Utilities Expense on April 20. Analyze: If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Problem 9.5A (Static) Correcting errors revealed by a bank reconciliation. LO 9-5, 9-6
During the bank reconciliation process at Fontes & Barone Consulting, LLP, on May 2, 20X1, the following two errors were discovered
in the firm's records.
a. The checkbook and the general journal indicated that Check 2206 dated April 17 was issued for $696 to make a cash purchase of
supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the
check was $96.
b. The checkbook and the general journal indicated that Check 2247 dated April 20 was issued for $140 to pay a utility bill. However,
examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $410.
Required:
1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of
April 30 was $25,275. The errors listed above are the only two items that affect the book balance.
2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 was
debited to Utilities Expense on April 20.
Analyze:
If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount?
Complete this question by entering your answers in the tabs below.
General
Bank Rec
Analyze
Journal
Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance
as of April 30 was $25,275. The errors listed above are the only two items that affect the book balance.
FONTES & BARONE CONSULTING, LLP
Transcribed Image Text:Problem 9.5A (Static) Correcting errors revealed by a bank reconciliation. LO 9-5, 9-6 During the bank reconciliation process at Fontes & Barone Consulting, LLP, on May 2, 20X1, the following two errors were discovered in the firm's records. a. The checkbook and the general journal indicated that Check 2206 dated April 17 was issued for $696 to make a cash purchase of supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $96. b. The checkbook and the general journal indicated that Check 2247 dated April 20 was issued for $140 to pay a utility bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $410. Required: 1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $25,275. The errors listed above are the only two items that affect the book balance. 2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 was debited to Utilities Expense on April 20. Analyze: If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount? Complete this question by entering your answers in the tabs below. General Bank Rec Analyze Journal Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $25,275. The errors listed above are the only two items that affect the book balance. FONTES & BARONE CONSULTING, LLP
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education