Requireda. Prepare a bank reconciliation at June 30.b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation. Problem 7-6B Preparing a bank reconcillation and recording adjustmentsLO6CHECK FIGURE: a. Adjusted book balance = $13,929The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below:Village-on-the-Lake CondosBank ReconciliationМay 31, 2020Bank statement balance..$ 2,060Book balance.$3,910Add:Deposit of May 31 in transit.12.500$14,560Deduct:Outstanding cheques:# 103.$6,520#120.4,13010.650Adjusted bank balance..$ 3,910Adjusted book balance.$3,910...................The Cash account in the general ledger appeared as follows on June 30:Page 528CashAcct. No. 101DateExplanationPRDebitCreditBalance2020May31Balance3,910June30CR2138,68042,59030CD1631,86110,729A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal, is shownbelow:Deposits MadeCheques WrittenJune 5..$ 590No.127.$ 2,10010..1,120128.45015.5,690129680204,510130,9,75027.7,830131.19630.12,600132,6,42030.6,340133.4,550Total June Cash Receipts. .$38,6806,780134.135.820136.115Total June Cash Disbursements.$31,861 The following bank statement is available for June:Bank StatementJune 30, 2020To: Village-on-the-Lake CondosBank of Nova ScotiaCheques/ChargesDeposits/CreditsBalance2,060#13306/024,55006/0212,50010,010#13606/0511506/0559010,485#12906/1068006/101,12010,925#13006/159,75006/155,6906,865#10306/206,52006/204,5104,855#13406/276,78006/277,8305,905#12806/3045006/3016,20021,655SC06/3040021,255NSF = Not SufficientSC = ServicePMT = PrincipalINT = InterestFundsChargePaymentIn reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June=30, recorded in the cash receipts journal incorrectly as $12,600, was recorded by the bank correctly as $16,200.Page 529Requireda. Prepare a bank reconciliation at June 30.b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bankreconciliation.

Journal entries shows the recording of transactions during an accounting year as every transaction…

Answered: a. Prepare a bank reconciliation at…

a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please prepare the bank reconciliation for CSA
a. The June 30 cash balance in the general ledger is $878. b. The June 30 balance shown on the bank statement is $402. c. Checks Issued but not returned with the bank statement were Number 712 for $24 and Number 723 for $55. d. A deposit made late on June 30 for $472 Is Included in the general ledger balance but not in the bank statement balance. e. Returned with the bank statement was a notice that a customer's check for $74 that was deposited on June 24 had been returned because the customer's account was overdrawn. 1. During a review of the checks that were returned with the bank statement, It was noted that the amount of Check Number 728 was $65 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $56. Required: Prepare a bank reconciliation as of June 30 from the above information. Note: Total the entries of the same account together when entering in the bank…
Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. EFT transfer to a supplier. 2. Bank service charge. 3. Check printing charge. 4. Error recording check #214 which was written for $450 but recorded for $540. 5. Collection of note and interest by bank on company's behalf.
The April 30 bank statement of Counselling Service Association(CSA) has just arrived from SoctiaBank. Using the pictures provided to prepare the Bank Reconciliations for CSA and Journalise the April 30 transections needed to update update CSA's Cash Account
6, 7, A bank reconciliation for October 31 follows. Bank statement balance Add: Deposit in transit Deduct: Outstanding checks Adjusted bank balance View transaction list < 1 2 Note: Enter debits before credits. Date October 31 Bank Reconciliation October 31 Journal entry worksheet Cash $ 6,482 3 291 6,773 79 $ 6,694 Prepare the necessary journal entries based on the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Book balance Add: 4 Collection of a note Interest earned Deduct: NSF check Bank service charges Adjusted book balance Record the $400 collection of a note receivable by the bank on our behalf. Saved General Journal $ 400 64 Debit 63 61 $ 6,354 Credit 464 6,818 124 $6,694
Cash receipts should be deposited on the day of receipt or the following business day. Select the most appropriate audit procedure to determine that cash is promptly deposited. a. Review the functions of cash receiving and disbursing for proper separation of duties. b. Review cash register tapes prepared for each sale. c. Review the functions of cash handling and maintaining accounting records for proper segregation of duties. d. Compare the daily cash receipts totals with the bank deposits
Agree current year amounts on cash lead schedule to trial balance. Agree prior year amounts to prior year audited financial statements. D-1 Accuracy DW Agreed without exception. Foot cash lead schedule. Obtain confirmations from banks (standard bank confirmation). D-3 DW Obtain cut-off statement from banks for all checking accounts. D-4 DW Obtain reconciliations of all bank accounts. D-2 DW Vouch the bank balance on the reconciliation to the bank confirmation. Trace the reconciled book balance to the trial balance. Foot client-prepared bank reconciliations. Foot the deposits in transit and agree to amount on reconciliation. Vouch deposits in transit on the reconciliation to bank deposits early in the next period. Determine and document the last check written during the year under audit. n/a Cut-off DW Per my observation the last check written during the year was 3621. Foot the outstanding…
On receiving the bank cutoff statement, the auditor should trace: a. Deposits in transit on the year-end bank reconciliation to deposits in the cash receipts journal. b. Checks dated prior to year end to the outstanding checks listed on the year-end bank reconciliation. c. Deposits listed on the cutoff statement to deposits in the cash receipts journal. d. Checks dated subsequent to year end to the outstanding checks listed on the year-end bank reconciliation.
Answer both questions. Answers only.
Which of the following can be considered as an effective control of cash?A. One person handles the receipts and disbursements of cash.B. Cash is deposited monthly into a bank.C. There is approval of cash payments.D. A reconciliation of the bank balance with the cash balance is prepared twice a year.
An adjusting entry is required for: Select one© a. Deposit în transit.O b. Outstanding checksO c. Bank errorsO d. Collection of a note by the bank
Which of the following practices contributes to efficientcash management? a. Never borrow money—maintain a cash balance suffi-cient to make all necessary payments. b. Record all cash receipts and cash payments at the endof the month when reconciling the bank statements.c. Prepare monthly forecasts of planned cash receipts,payments, and anticipated cash balances up to a year inadvance.d. Pay each bill as soon as the invoice arrives.