Exercise 5-11 (Static) Bank reconciliation adjustment LO 5-3 Refer to the information given below: The June 30 cash balance in the general ledger is $1,940. The June 30 balance shown on the bank statement is $1,168. Checks issued but not returned with the bank statement were Number 712 for $33 and Number 723 for $160. A deposit made late on June 30 for $800 is included in the general ledger balance but not in the bank statement balance. Returned with the bank statement was a notice that a customer's check for $120 that was deposited on June 24 had been returned because the customer's account was overdrawn. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check Number 728 was $72 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 $27. Required: Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items as on June 30. Prepare the adjusting journal entry that should be prepared to reflect the reconciling items. What is the amount of cash to be included in the June 30 balance sheet for the bank account reconciled?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Time Remaining 3 hours 41 minutes 7 seconds

03:41:07

ItemSkipped

Check my workCheck My Work button is now enabled

Item 2

Time Remaining 3 hours 41 minutes 7 seconds

03:41:07

Exercise 5-11 (Static) Bank reconciliation adjustment LO 5-3

Refer to the information given below:

The June 30 cash balance in the general ledger is $1,940.
The June 30 balance shown on the bank statement is $1,168.
Checks issued but not returned with the bank statement were Number 712 for $33 and Number 723 for $160.
A deposit made late on June 30 for $800 is included in the general ledger balance but not in the bank statement balance.
Returned with the bank statement was a notice that a customer's check for $120 that was deposited on June 24 had been returned because the customer's account was overdrawn.
During a review of the checks that were returned with the bank statement, it was noted that the amount of Check Number 728 was $72 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 $27.

Required:

1. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items as on June 30.
2. Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.
What is the amount of cash to be included in the June 30 balance sheet for the bank account reconciled?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions