2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" frdropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.Increases to Cash:Oct. 31Statement of Cash FlowsDecreases to Cash:Oct. 31Statement of Cash FlowsAssets+Assets+Balance SheetBalance Sheet=LiabilitiesLiabilities+ Stockholders' EquityIncome Statement+ Stockholders' Equity+Income Statement Bank Reconciliation and EntriesThe cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,745. The bank statement indicated a balance of $9,950 on October 31, 20Y6.Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a. Checks outstanding totaled $3,580.b. A deposit of $3,730, representing receipts from October 31, had been made too late to appear on the bank statement.c. The bank had collected $1,940 on a note left for collection. The face of the note was $1,840.d. A check for $550 returned with the statement had been incorrectly recorded by Deaver Consulting as $500. The check was for the payment of an obligation to OxfordOffice Supplies Co. for the purchase of office supplies on account.e. A check drawn for $560 had been incorrectly charged by the bank as $60.f. Bank service charges for October amounted to $35.Instructions:

A bank reconciliation statement could be defined as the summary of the banking and business accounts…

2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" fr dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Increases to Cash: Oct. 31 Statement of Cash Flows Decreases to Cash: Oct. 31 Statement of Cash Flows Assets + Assets Balance Sheet = Balance Sheet = Liabilities Liabilities + Stockholders' Equity Income Statement + + Stockholders' Equity Income Statement

2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" fr dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Increases to Cash: Oct. 31 Statement of Cash Flows Decreases to Cash: Oct. 31 Statement of Cash Flows Assets + Assets Balance Sheet = Balance Sheet = Liabilities Liabilities + Stockholders' Equity Income Statement + + Stockholders' Equity Income Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crane Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2022, was $18,890.00. Outstanding checks were No. 62 for $149.00, No. 183 for $171.00, No. 284 for $262.00, No. 862 for $222.00, No. 863 for $277.00, and No. 864 for $202.00. Included with the statement was a credit memorandum of $209.00 indicating the collection of a note receivable for Crane Company by the bank on October 25. This memorandum has not been recorded by Crane. The company's ledger showed one Cash account with a balance of $22,311.00. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal…
Explain Well with proper answer .
Rahul
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