14. Prepare the bank reconciliation statement using the following data and also record the necessary journal entry to reconcile the statement: Bank Balance = $4,487 Book Balance = $5,899 Interest income = $35 Deposit in transit = $1,590 NSF check = $586 Outstanding checks = $729

14. Prepare the bank reconciliation statement using the following data and also record the necessary journal entry to reconcile the statement: Bank Balance = $4,487 Book Balance = $5,899 Interest income = $35 Deposit in transit = $1,590 NSF check = $586 Outstanding checks = $729

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Rodgers Company gathered the following reconciling information in preparing its May bank…

A: The management prepares a bank reconciliation statement to match the company's cash balance with the…

Q: Using the following information: The bank statement balance is $3,744. The cash account balance is…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: The following data were gathered to use in reconciling the bank account of McCurdy Company: Balance…

A: Bank reconciliation is the statement which is prepared in order to reconcile the balances of cash as…

Q: The following data were gathered to use in reconciling the bank account of Bradford Company:…

A: In this question, we need to prepare the Bank Reconciliation statement and also pass necessary…

Q: Using the following information: The bank statement balance is $5,002. The cash account balance is…

A: Bank reconciliation statement is a statement in which reconciliation between the balance stated in…

Q: Using the following information: a. The bank statement balance is $3,351. b. The cash account…

A: Bank reconciliation is the method of validating all cash account balances in an entity's accounting…

Q: Using the following information, prepare a bank reconciliation. Bank balance: $4,021 Book…

A: Bank reconciliation is an essential statement prepared by management at the end of each month to…

Q: Using the following information: The bank statement balance is $4,074. The cash account balance is…

A: A bank reconciliation statement is a statement prepared to match the balance of the bank book and…

Q: Using the following information, prepare a bank reconciliation. Bank balance: $4,178 Book balance:…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Balance on bank statement 490 Total of outstanding checks 15 Deposits in transit 190 Service charge…

A: The differences in balances occurred due to errors made by the management. The transactions will be…

Q: Using the following information: a. The bank statement balance is $3,349. b. The cash account…

A: Bank Reconciliation Statement for Miller Co. as of August 31st: Bank Statement Balance: $3,349Add:…

Q: Based on the following information, prepare a bank reconciliation to determine the adjusted…

A: Deposits in transit refers the sum of money which has been received and recorded by the organization…

Q: repare a bank reconciliation as of December 31, 2020

A: The bank reconciliation statement is the statement prepared to rectify or reconcile the difference…

Q: HH Using the following information: a. The bank statement balance is $4,799. b. The cash account…

A: Hello student! Bank Reconciliation determines the correct balance that should reflect the bank's…

Q: Based on the following information, determine the true balance in your checking account. Balance in…

A: The true balance in a checking account is the accurate and up-to-date amount of funds available in…

Q: Using the following information: The bank statement balance is $4,044. The cash account balance is…

A: Bank Reconciliation is statement prepared to reconcile the difference between balance in bank…

Q: Using the following information: a. The bank statement balance is $4,340. b. The cash account…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: INFORMATION FOR BANK RECONCILIATION Print a copy of the cash account (101). Use the printed copy of…

A: The financial transactions related to cash and bank are recorded by the businesses in the cash book.…

Q: The following data were gathered to use in reconciling the bank account of Donovan Company: Balance…

A: Bank reconciliation statement is prepared with a view to reconcile the cash balance as per entity's…

Q: Using the following information: a. The bank statement balance is $4,690. b. The cash account…

A: Bank reconciliation reconcile the bank balance with book balance as per financial records.

Q: Indicate what effect each situation will have on the bank reconciliation process. Place the number…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: Bank Reconciliation and Related Journal Entries Required: 1. Prepare a bank reconciliation as of…

A: 1. Johnson Enterprises Bank Reconciliation October 31, 20-- Bank Statement balance, Oct…

Q: C. NSF , Bank collection of note receivable of $800, and interest of $80. 75. e. Interest earned on…

A: Bank reconciliation statement shows the reconciliation of entity's bank account with its financial…

Q: Using the following information: a. The bank statement balance is $2,622. b. The cash account…

A: Bank reconciliation statement is prepared by the management at a particular time period. It helps to…

Q: 28. Prepare the bank reconciliation and prepare the journal entries need to reconcile cash. The cash…

A: The process of bank reconciliation involves comparing a company's cash transaction records to those…

Q: Place a check mark in the column that indicates the location of each item that would be found on a…

A: The following locations will be used for the adjustments, assuming Cash ledger as base of bank…

Q: The treasurer preparing the October bank reconciliation identified the following items: Cash balance…

A: A bank reconciliation statement is prepared by almost every organization at a particular time. It is…

Q: urrent balance based on the statement balance is $ urrent balance based on the checkbook balance is…

A: Bank Capital - Bank capital is the balance of a bank's net worth left over after subtracting its…

Q: Using the following information: The bank statement balance is $4,256. The cash account balance is…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Q: The following data were gathered to use in reconciling the bank account of Photo Op: Balance per…

A: Introduction: BRS: BRS stands for Bank Reconciliation statement. To reconcile the difference between…

Q: Using the following information, prepare the journal entries to reconcile the bank statement. Bank…

A: Bank reconciliation is drawn up by the organizations to verify the cash balance as per the books of…

Q: The following data were gathered to use in reconciling the bank account of Reddan Company: Balance…

A: Bank reconciliation is an important part of a company's internal control system. By regularly…

Q: e following information, determine the adjusted bank balance. Bank balance: $6,925 Deposits in…

A: Solution: Adjusted bank balance is the balance of bank after adjusting for cash transaction which…

Q: A bank reconciliation for October 31 follows. Bank statement balance Add: Deposit in transit Deduct:…

A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…

Q: Question Content Area Using the following information: The bank statement balance is $5,065. The…

A: Bank statement reconciliation contributes to the accuracy of financial records like the income…

Q: Using the following information: The bank statement balance is $5,289. The cash account balance is…

A: Bank reconciliation statement is prepared by almost every organization at a particular time. It is a…

Q: Based on the following information, determine the true balance in your checking account. Balance in…

A: Bank reconciliation is one of the reconciliation processes adopted by companies. This process helps…

Q: Using the following information: The bank statement balance is $3,093. The cash account balance is…

A: Bank reconciliation statement record book which reconcile the balance as per bank books with cash…

Q: The following data were gathered to use in reconciling the bank account of Reddan Company: Balance…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Based on the he following information,preaper a blank reconciliation to determine the adjusted(…

A: Bank reconciliation statement is prepared to reconcile the balance between bank and cash.

Q: Prepare a bank reconciliation from the following information: a. Balance per bank statement as of…

A: Bank reconciliation statement is used to determine the differences between the bank statement…

Q: Using the following information: 1. The bank statement balance is $3,322. 2. The cash account…

A: Bank reconciliation statement is prepared to reconcile the bank balance to the cash balance…

Q: Using the following information: 1. The bank statement balance is $3,322. 2. The cash account…

A: Bank reconciliation is prepared at year end .The purpose of this is to reconcile any difference…

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

14. Prepare the bank reconciliation statement using the following data and also
record the necessary journal entry to reconcile the statement:
Bank Balance = $4,487
Book Balance = $5,899
Interest income = $35
Deposit in transit = $1,590
NSF check = $586
Outstanding checks = $729

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $25,750 Balance per company records 19,140 Bank service charges 45 Deposit in transit 2,300 Note collected by bank with $200 interest 5,200 Outstanding checks 3,755 a. What is the adjusted balance on the bank reconciliation? 24,295 V
Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 31 the cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,146.46. Upon comparing the bank statement to the books, the following items were found. а. A bank debit memo issued for an NSF check from a customer of $21.25. b. A bank credit memo issued for interest of $8.50 earned during the month. С. During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement. d. A bank debit memo issued for $18.50 for bank service charges. е. Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank. f. The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank. g. After comparing the canceled checks to the bank statement, it was discovered that a check…
Using the following information: a. The bank statement balance is $4,265. b. The cash account balance is $4,448. c. Outstanding checks amount to $835. d. Deposits in transit are $954. e. The bank service charge is $55. f. A check for $37 for supplies was recorded as $28 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation Line Item Description May 31 Amount Amount Cash balance according to bank statement Adjusted balance Cash balance according to company's records Total deductions Adjusted balance
Based on the following information, what amount would be subtracted from the bank statement side of the bank reconciliation? ATM withdrawal $31; Outstanding checks $135; Interest $4; Deposit in-transit $87.Multiple Choice $139 $166 $87 $135 $31
Using the following information: The bank statement balance is $4,690. The cash account balance is $5,080. Outstanding checks amounted to $715. Deposits in transit are $1,020. The bank service charge is $40. A check for $72 for supplies was recorded as $27 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co.Bank ReconciliationAugust 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: Deposits in transit not recorded by bank $fill in the blank 3 Outstanding checks fill in the blank 5 Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $fill in the blank 10 fill in the blank 12 Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14
Using the following information, prepare a bank reconciliation. Bank balance: $3,678 Book balance: $2,046 Deposits in transit: $320 Outstanding checks: $108 and $334 Bank charges: $25 Notes receivable: $1,500; interest: $35 Bank Reconciliation Bank Statement Balance at (date) Add: Less: Adjusted Bank Balance Book Balance at (date) Add: Less: Adjusted Book Balance
Using the following information: The bank statement balance is $3,718. The cash account balance is $4,086. Outstanding checks amounted to $866. Deposits in transit are $1,177. The bank service charge is $48. A check for $78 for supplies was recorded as $69 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31.
Using the following information: The bank statement balance is $5,175. The cash account balance is $5,503. Outstanding checks amounted to $712. Deposits in transit are $998. The bank service charge is $33. A check for $76 for supplies was recorded as $67 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co.Bank ReconciliationMay 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $- Select - - Select - Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $- Select - - Select - Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14
Using the following information, prepare a bank reconciliation for Sunland Company for July 31, 2022. The bank statement balance is $3,770. The cash account balance is $4,170. Outstanding checks totaled $1,360. a. b. C. d. e. f. Deposits in transit are $1,670. The bank service charge is $54. A check for $95 for supplies was recorded as $59 in the ledger.
Using the following information, prepare a bank reconciliation. • Bank balance: $4,687 • Book balance: $5,690 • Deposits in transit: $1,546 • Outstanding checks: $956 • Interest income: $53 • NSF check: $466 Bank Reconciliation Bank Statement Balance at (date) Add: Less: Adjusted Bank Balance Book Balance at (date) Add: Less: Adjusted Book Balance
Using the following information: The bank statement balance is $3,159. The cash account balance is $3,414. Outstanding checks amounted to $511. Deposits in transit are $641. The bank service charge is $116. A check for $43 for supplies was recorded as $34 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31.
a. The bank statement balance is $3,240. b. The cash account balance is $3,407. c. Outstanding checks amounted to $736. d. Deposits in transit are $698. e. The bank service charge is $196. f. A check for $32 for supplies was recorded as $23 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance 000 00