During the bank reconciliation process at Batiste & French Consulting, LLP, on May 2, 20X1, the following two errors were discovered In the firm's records. a. The checkbook and the general journal Indicated that Check 2206, dated April 17, was issued for $585 to make a cash purchase of supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $85. b. The checkbook and the general journal Indicated that Check 2247, dated April 20, was issued for $120 to pay a utility bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $210. Required: 1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $24,275. The errors listed above are the only two items that affect the book balance. 2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 was debited to Utilities Expense on April 20 Analyze: If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount? Complete this question by entering your answers in the tabs below. Bank Rec General Journal Analyze Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $24,275. The errors listed above are the only two items that affect the book balance. BATISTE & FRENCH CONSULTING, LLP Bank Reconciliation Statement Balance in books Additions: April 30, 20X1 $ Deductions:
During the bank reconciliation process at Batiste & French Consulting, LLP, on May 2, 20X1, the following two errors were discovered In the firm's records. a. The checkbook and the general journal Indicated that Check 2206, dated April 17, was issued for $585 to make a cash purchase of supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $85. b. The checkbook and the general journal Indicated that Check 2247, dated April 20, was issued for $120 to pay a utility bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $210. Required: 1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $24,275. The errors listed above are the only two items that affect the book balance. 2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247 was debited to Utilities Expense on April 20 Analyze: If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount? Complete this question by entering your answers in the tabs below. Bank Rec General Journal Analyze Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $24,275. The errors listed above are the only two items that affect the book balance. BATISTE & FRENCH CONSULTING, LLP Bank Reconciliation Statement Balance in books Additions: April 30, 20X1 $ Deductions:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During the bank reconciliation process at Batiste & French Consulting, LLP, on May 2, 20X1, the following two errors were discovered
In the firm's records.
a. The checkbook and the general journal Indicated that Check 2206, dated April 17, was issued for $585 to make a cash purchase
of supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of
the check was $85.
b. The checkbook and the general journal Indicated that Check 2247, dated April 20, was issued for $120 to pay a utility bill.
However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check
was $210.
Required:
1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as
of April 30 was $24,275. The errors listed above are the only two items that affect the book balance.
2. Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17 and Check 2247
was debited to Utilities Expense on April 20
Analyze:
If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount?
Complete this question by entering your answers in the tabs below.
Bank Rec
General
Journal
Analyze
Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance
as of April 30 was $24,275. The errors listed above are the only two items that affect the book balance.
BATISTE & FRENCH CONSULTING, LLP
Bank Reconciliation Statement
Balance in books
Additions:
April 30, 20X1
$
Deductions:
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