Bank Reconciliation and Related Journal Entries The book balance in the checking account of Johnson Enterprises as of October 31 is $5,690.00. The bank statement shows an ending balance of $5,176.00. The following information is discovered by (1) comparing last month's deposits in transit and outstanding checks with this month's bank statement, (2) comparing deposits and checks written per books and per bank in the current month, and (3) noting service charges and other debit and credit memos shown on the bank statement. Deposits in transit: 10/29 $215.00 10/30 410.00 Outstanding checks: No. 1635 56.40 No. 1639 175.00 No. 1641 131.30 No. 1653 447.30 Unrecorded ATM withdrawal: 200.00 Bank service charge: 36.00 NSF check: 478.00 Error on Check No. 1624 Checkbook shows it was for $76, but it was actually written for $61. Accounts Payable was debited. *Funds were withdrawn by Enoch Johnson for personal use. Required: 1. Prepare a bank reconciliation as of October 31, 20--. Johnson Enterprises Bank Reconciliation October 31, 20-- Bank statement balance, October 31 Adjusted bank balance
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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