A bank reconciliation should be prepared Oa. to explain any difference between the company's balance per books with the balance per bank Ob. whenever the bank refuses to lend the company money Oc. by the person who is authorized to sign checks Od. by the company's bank

A bank reconciliation should be prepared Oa. to explain any difference between the company's balance per books with the balance per bank Ob. whenever the bank refuses to lend the company money Oc. by the person who is authorized to sign checks Od. by the company's bank

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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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

A bank reconciliation should be prepared
Oa. to explain any difference between the company's balance per books with the balance per bank
Ob. whenever the bank refuses to lend the company money
Oc. by the person who is authorized to sign checks
Od. by the company's bank

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Please answer the following 2 questions. Thank you
The following are reconciling items in an enterprise's bank reconciliation statement.I. Deposit in transitII. Company check for P32,500 recorded in the books for P23,500III. Check of another company erroneously charged by bank in the company's accountIV. Deposit of another company erroneously credited by bank to the company's accountV. Bank service chargesVI. No sufficient fund check charged back by the bankVII. Company deposit for P32,500 recorded in the books for P23,500Which of the foregoing adjustments would be shown as deduction from the cash balance per books in order to arrive at the correct cash balance? a. II, IV, V, VI and VII b. II, V, VI and VII c. II, V and VI d. V, VI and VII
Analyze the following errors that appeared on Black Electric’s bank statement and in the accounting records: a. The bank recorded a deposit of $30 as $300. b. The company’s bookkeeper mistakenly recorded a deposit of $250 as $520. c. The company’s bookkeeper mistakenly recorded a payment of $450 received from a customer as $540 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount. d. The bank statement shows a check that was written by the company for $392 was erroneously paid (cleared the account) as $329. e. The bookkeeper wrote a check for $275 but erroneously wrote down $257 as the cash disbursement in the company’s records. Requirement For each error, describe how the correction would be shown on the company’s bank reconciliation.
Do not give solution in image
Bank Reconciliation For a through g, indicate whether its amount (1) affects the bank or book side of a bank reconciliation, (2) is an addition or subtraction in a bank reconciliation, and (3) requires a journal entry. a. Interest on cash balance b. Bank service charges c. Minimum balance bank fee d. Outstanding checks e. Collection of note by bank f. NSF checks g. Deposits in transit Bank or Book Side Add or Subtract Entry or Not
Which one of these documents is not required for bank reconciliation? (A) Bank Column of cash book (B) Bank pass book (C) Previous year's balance sheet (D) Bank statement
In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. suthrachod from the bank balance.
Please provide correct answer
Would a bank service charge be added to or subtracted from the company's books or the bank statement during the construction of a bank reconciliation?
After preparing a bank reconciliation, journal entries are necessary to record Bank service charges Deposits in transit Outstanding checks Both B and C are correct A, B, and C are correct
Reconciliation Items per Bank - Deposits in Transit Question; What does it mean when it says to compare individual deposits on the bank statement with: 1) the deposits in transit from the preceding bank reconciliation. AND 2) the current month's deposits recorded in the company's books. Please explain e.g's would be helpful as well.
In a bank reconciliation, to adjust for an incorrect deposit of $1,000 from another company in your account requires: O reducing the bank balance by the amount of the deposit O increasing the bank balance by the amount of the deposit O reducing the book balance by the amount of the deposit O increasing the book balance by the amount of the deposit