The following includes transactions necessary to prepare a bank reconciliation.The following additional information must also be considered:Check #5454 was written in June but did not clear the bank until July 2. There were no other outstanding checks, and no deposits in transit at the end of June.The EFT (electronic funds transfer) on July 11 relates to the monthly utility bill; the Tackle Shop has authorized the utility to draft its account directly each month.The Tackle Shop is optimistic that they will recover the full amount, including the service charge, on the NSF check that was given to them during the month.The bank collected a $5,000 note for The Tackle Shop, plus 9% interest ($5,450).The Tackle Shop's credit card clearing company remitted funds on July 25; the Tackle Shop received an email notification of this posting and simultaneously journalized this cash receipt in the accounting records.The Tackle Shop made the deposit of $3,565.93 late in the day on July 31, 20X3.The ending cash balance, per the company general ledger, was $47,535.30. **Bank Account Transactions**This table details the various bank transactions over a specific period, providing a comprehensive overview of checks and deposits and their effects on the account balance.### Table Columns1. **Date**: The day when the transaction took place.2. **Party**: The name or description associated with the transaction.3. **Ref #**: The reference number for each transaction.4. **Check**: The amount of money withdrawn via a check.5. **Deposit**: The amount of money added to the account.6. **Balance**: The account balance after the transaction.### Detailed Breakdown- **Opening Balance** on 07-01-X3: $42,087.80- **Transactions from 07-01-X3 to 07-31-X3**: - **Withdrawals via checks** include amounts such as $245.00, $11,998.20, and $2,779.59. - **Deposits** include a notable amount on 07-09-X3 of $12,994.36 and another on 07-17-X3 of $8,855.10. - There is a recurring deposit amount on 07-31-X3 of $3,565.93.### Final Balances- **Total Checks**: $23,877.54- **Total Deposits**: $29,325.04- **Final Balance** on 07-31-X3: $47,535.30### Additional Insights- The account experiences significant fluctuations due to large checks and deposits, typical in active accounts with business or extensive personal transactions.- Patterns in transactions might reflect regular business activities or periodic payments and receipts. **Lake City National Bank Statement Overview****Institution Details:**- **Name:** Lake City National Bank- **Address:** 212 Golden Street, P.O. Box 6458, Lake City, XX 12345**Statement Period:**- **From:** July 1, 20X3 - **To:** July 31, 20X3**Customer Details:**- **Statement For:** The Tackle Shack- **Address:** 445 Main Street, Lake City, XX 12345- **Account #:** 76-7888-0987**Checking Summary:**- **Previous Statement Balance (06-30-X3):** $46,543.89- **Total of 4 Deposits:** $31,209.11- **Total of 16 Withdrawals:** -$27,077.77- **Interest Earnings:** $119.34- **Service Charges:** -$55.00- **New Balance:** $50,739.57---**Checks and Other Debits:**| Check | Date Paid | Amount | Check | Date Paid | Amount ||---------|-----------|-----------|---------|-----------|-----------|| 5454 | 2-Jul | 4,456.09 | *5465* | 16-Jul | 85.58 || *5457* | 3-Jul | 245.00 | 5466 | 19-Jul | 1,199.19 || 5458 | 3-Jul | 12.34 | 5467 | 23-Jul | 76.14 || 5459 | 10-Jul | 66.14 | 5468 | 23-Jul | 375.62 || 5460 | 5-Jul | 11,998.20 | 5469 | 30-Jul | 2,779.59 || 5461 | 9-Jul | 3,000.00 | 5470 | 27-Jul | 9.31 || *5463* | 16-Jul | 2,119.44 | *5472* | 31-Jul | 109.00

A bank reconciliation statement (BRS) is a statement prepared with an objective to tally the bank…

Answered: prepare a bank reconciliation.

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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Question

The following includes transactions necessary to prepare a bank reconciliation.

The following additional information must also be considered:

Check #5454 was written in June but did not clear the bank until July 2. There were no other outstanding checks, and no deposits in transit at the end of June.
The EFT (electronic funds transfer) on July 11 relates to the monthly utility bill; the Tackle Shop has authorized the utility to draft its account directly each month.
The Tackle Shop is optimistic that they will recover the full amount, including the service charge, on the NSF check that was given to them during the month.
The bank collected a $5,000 note for The Tackle Shop, plus 9% interest ($5,450).
The Tackle Shop's credit card clearing company remitted funds on July 25; the Tackle Shop received an email notification of this posting and simultaneously journalized this cash receipt in the accounting records.
The Tackle Shop made the deposit of $3,565.93 late in the day on July 31, 20X3.
The ending cash balance, per the company general ledger, was $47,535.30.

**Bank Account Transactions**

This table details the various bank transactions over a specific period, providing a comprehensive overview of checks and deposits and their effects on the account balance.

### Table Columns
1. **Date**: The day when the transaction took place.
2. **Party**: The name or description associated with the transaction.
3. **Ref #**: The reference number for each transaction.
4. **Check**: The amount of money withdrawn via a check.
5. **Deposit**: The amount of money added to the account.
6. **Balance**: The account balance after the transaction.

### Detailed Breakdown

- **Opening Balance** on 07-01-X3: $42,087.80
- **Transactions from 07-01-X3 to 07-31-X3**:
- **Withdrawals via checks** include amounts such as $245.00, $11,998.20, and $2,779.59.
- **Deposits** include a notable amount on 07-09-X3 of $12,994.36 and another on 07-17-X3 of $8,855.10.
- There is a recurring deposit amount on 07-31-X3 of $3,565.93.

### Final Balances
- **Total Checks**: $23,877.54
- **Total Deposits**: $29,325.04
- **Final Balance** on 07-31-X3: $47,535.30

### Additional Insights
- The account experiences significant fluctuations due to large checks and deposits, typical in active accounts with business or extensive personal transactions.
- Patterns in transactions might reflect regular business activities or periodic payments and receipts.

**Lake City National Bank Statement Overview**

**Institution Details:**
- **Name:** Lake City National Bank
- **Address:** 212 Golden Street, P.O. Box 6458, Lake City, XX 12345

**Statement Period:**
- **From:** July 1, 20X3
- **To:** July 31, 20X3

**Customer Details:**
- **Statement For:** The Tackle Shack
- **Address:** 445 Main Street, Lake City, XX 12345
- **Account #:** 76-7888-0987

**Checking Summary:**
- **Previous Statement Balance (06-30-X3):** $46,543.89
- **Total of 4 Deposits:** $31,209.11
- **Total of 16 Withdrawals:** -$27,077.77
- **Interest Earnings:** $119.34
- **Service Charges:** -$55.00
- **New Balance:** $50,739.57

---

**Checks and Other Debits:**

| Check | Date Paid | Amount | Check | Date Paid | Amount |
|---------|-----------|-----------|---------|-----------|-----------|
| 5454 | 2-Jul | 4,456.09 | *5465* | 16-Jul | 85.58 |
| *5457* | 3-Jul | 245.00 | 5466 | 19-Jul | 1,199.19 |
| 5458 | 3-Jul | 12.34 | 5467 | 23-Jul | 76.14 |
| 5459 | 10-Jul | 66.14 | 5468 | 23-Jul | 375.62 |
| 5460 | 5-Jul | 11,998.20 | 5469 | 30-Jul | 2,779.59 |
| 5461 | 9-Jul | 3,000.00 | 5470 | 27-Jul | 9.31 |
| *5463* | 16-Jul | 2,119.44 | *5472* | 31-Jul | 109.00

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