8AyRequired informationA bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance isadjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date butnot reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for thedepositor, and interest earned on the account.Steps in Preparing Bank Reconciliation:1. Enter bank balance taken from the bank statement.2. Add unrecorded deposits and bank errors understating the bankbalance.3. Subtract any outstanding checks and bank errorsoverstating the bank balance from the bank balance.4. Compute the adjusted bank balance.5. Enter cash account book balance taken from the accountingrecords.6. Add any unrecorded cash receipts and errors understating the bookbalance to the book balance.7. Subtract any unrecorded bank fees, NSF checks, and errorsoverstating the book balance and deduct them from the book balance.Knowledge Check 01DMatch the term and the definition 8AyRequired informationA bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance isadjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date butnot reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for thedepositor, and interest earned on the account.Steps in Preparing Bank Reconciliation:1. Enter bank balance taken from the bank statement.2. Add unrecorded deposits and bank errors understating the bankbalance.3. Subtract any outstanding checks and bank errorsoverstating the bank balance from the bank balance.4. Compute the adjusted bank balance.5. Enter cash account book balance taken from the accountingrecords.6. Add any unrecorded cash receipts and errors understating the bookbalance to the book balance.7. Subtract any unrecorded bank fees, NSF checks, and errorsoverstating the book balance and deduct them from the book balance.Knowledge Check 01DMatch the term and the definition

Bank Reconciliation Statement :— It is the statement that shows reconciliation of balance as per…

Knowledge Check 01 Match the term and the definition. DEFINITION 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company's book balance from its accounting records. 8. Subtract bank fees from the book balance. TERM Step 1 Step 2 Step 3 Step 4 S

Knowledge Check 01 Match the term and the definition. DEFINITION 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company's book balance from its accounting records. 8. Subtract bank fees from the book balance. TERM Step 1 Step 2 Step 3 Step 4 S

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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