At the end of the month you are reconciling your checking account and you cannot get the reconciliation difference to come to $0. Below is a screen shot of the reconciliation and the bank statement. What is the reason for the error? QBO Test Drive Company Bank StatementStatement Date: June 30, 20x1CreditsChargesBalanceBeginning Balance, June 15-May Check -10 - Robertson & Associates11-May Deposit27-May Check 12 - Robertson & Associates16-Jun Check 4 - Chin's Gas and Oil23-Jun Sales Tax Payment$5,000.00$ 300.00 $ 4,700.00$ 4,875.00$250.00 $4,625.00$ 54.55 $ 4,570.45$ 38.50 $ 4,531.95$ 4,531.95$175.00Ending Balances, June 30Figure 4 – Bank StatementReconcile CheckingEdit infoSave for laterStatement ending date:$4,231.95$4,531.95$-300.00STATEMENT ENDING BALANCECLEARED BALANCEDIFFERENCE$5,000.00$643.05$175.00+BEGINNING BALANCE4 PAYMENTS1 DEPOSITShow me aroundX Statement ending date Clear filter / View allPaymentsDepositsAllDATECLEARED DATEΤΥΡΕREF NO.ACCOUNTPAYEEМЕМОPAYMENT (US DEPOSIT (USI5/3/20x1Bill Paym...10Accounts Payabl...Robertson & ...300.005/11/20x1Receive P...1053Accounts Receiv...Bill's Windsur...175.005/3/20x1ExpenseLegal & Professi...Robertson & ...12250.006/17/20x1Check4Automobile:FuelChin's Gas a...54.556/23/20x1Sales Tax ...- Split -Q1 Payment38.506/23/20x1Sales Tax ...- Split -Q1 Payment38.406/26/20x1ExpenseJob Expenses:J...Tania's Nursery89.096/26/20x1Check12Legal & Professi...Books by Bes...55.00O O O O O O O

Bank balance as per books: $4,531.95 Deductions: 1. Sales tax payment of $38.40 2. Nursery expenses…

At the end of the month you are reconciling your checking account and you cannot get the reconciliation difference to come to $0. Below is a screen shot of the reconciliation and the bank statement. What is the reason for the error?

At the end of the month you are reconciling your checking account and you cannot get the reconciliation difference to come to $0. Below is a screen shot of the reconciliation and the bank statement. What is the reason for the error?

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

Interest on your bank balance: Suppose your bank account has a balance todayof $100. Consider the following time periods: t = 0, t = 1, t = 2, t = 12,t = 24, t = 48, and t = 60. Assume there are no deposits or withdrawalsin this account other than the interest that accumulates. (If you like, use aspreadsheet program to help you with this question.)(a) Compute your bank balance for these time periods assuming the interestrate is 1%.(b) Do the same thing for an interest rate of 6%.(c) Plot your bank balances for these two scenarios on a standard scale.(d) Do the same thing with a ratio scale.
Why is it important to reconcile a company's bank statement each month? What is the difference between an outstanding check and a cancelled check? Explain the only times the Petty Cash account should be debited or credited.
You are trying to explain debit and credit memos that appear on bank statements and whether these will increase or decrease your company's bank account balance. Complete the following table to help your new staff understand. Debit or Credit Increases or Decreases the Company's Item Memo Bank Account Balance EFT payment Bank correction of an error due to posting another customer's check to your account Service charge Note and interest collected for our company NSF check Bank correction of an error recording a $250 deposit as $520 EFT deposit
Your company writes a check for $123 but records it as $132. To adjust for this in a bank reconciliation, you would: reduce the book balance by $9 O reduce the bank balance by $9 O increase the bank balance by $9 O increase the book balance by $9
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
Please do not give solution in image format thanku
explain why it is important for a business to do a bank reconciliation monthly.
Review and study the following journal entries and determine which entries have errors. All transactions are regular daily transactions (no adjusting entries). When looking for errors ask yourself does that transaction make sense? Once you discover an error, state how you would correct it.
A check that has a future date instead of the actual date; it should not be deposited until the date on the check, is known as ____________. Electric Funds Transfer (EFT) Check 21 Bank card Post dated check
multiple choice quetion a.When preparing a bank reconciliation statement and the closing bank statement balance is an overdraft, we begin with the balance in the bank statement and then: add unpresented cheques and deduct outstanding receipts. add outstanding receipts and deduct unpresented cheques. add all receipts and deduct all payments. 4.add all payments and deduct all receipts
6. After comparing your bank statement, canceled checks, and checkbook register, complete the reconciliation statement shown below. What are the new and adjusted balances? Reconciliation Statement Check Register Balance Service Charge NEW BALANCE> 285.14 -8.10 Reconciliation statement Provided for your convenience Statement Balance Outstanding Checks # 202 # 203 $35.92 $28.75 Total Checks > (-) Outstanding Deposits 4/8 4/16 $129.08 $30.00 Total Deposits> (+) ADJUSTED BALANCE 182.63
Assume you are a new hire in the accounting department of an organization. One of your responsibilities is the reconciliation of the operating account. After the end of the month you are given a copy of the bank statement and the cancelled checks, and are instructed to perform your reconciliation. You notice that there are some faint markings on a portion of the bank statement that could be alterations. What steps would you take in performing the reconciliation?