— Prepare bank reconciliation statement for the month of August.— Prepare the adjusting entries. Cash bałance per accounting periodCash balance per bank statementBank service charge1,719,0003,195,00010,000Debit memo for the cost of printed checks deliveredby the bank, the charge has not been recordedin the accounting record12,000685,000500,000Outstanding checksDeposit of May 30 not recorded by bank until June 1Proceeds of bank loan on May 30, not recorded in theaccounting record, net of interest of P30,000Proceeds from a customer promissory note, principalamount P800,000 collected by the bank not takenup in the accounting record with interestCheck no. 1086 issued to a supplier entered in theaccounting record as 210,000 but deducted in thebank statement at an erroneous amount ofStolen check lacking unauthorized signature deducted fromMcdo's account by the bank in errorCustomer check returned by the bank marked NSF,indicating that the customer balance was notadequate to cover the check; no entry has been madein the accounting record to record the returned check570,000810,000120,00080,00077,000

Introduction: Company provides the following data for the month of August. Cash balance as per…

Answered: — Prepare bank reconciliation statement…

Business

Accounting

— Prepare bank reconciliation statement for the month of August. — Prepare the adjusting entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Choose the correct option. If you prepare a bank reconciliation based on the following information,…

A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…

Q: On November 3, Micah Asuncion received from the bank her bank statement for the month of October.…

A: Bank Reconcilation: It is a statement prepared by an enterprise to compare the bank transactions…

Q: nstructions: Prepare the bank reconciliation statement and the adjusting entries. Masigla Co. is…

A: Bank reconciliation statement is a statement prepared by the business organization in order to…

Q: Your client has requested that you assist them in setting up their accounting system and asks that…

A: Answer:- Accounting system:- An accounting system is a collection of accounting processes that have…

Q: Which procedure is an auditor most likely to use to detect a check outstanding at year-end that was…

A: answer are as follows

Q: Include your bank recon in your PDF upload!! 1. The balance on the 10/31 bank statement is $8,000.…

A: Solution: Balancers Inc Bank Reconciliation - October 31 Bank's Cash balance Company's cash…

Q: vice Charges 5.00 ceivable ng Expense 27.00 2,000.00 27.00

A: A bank Reconcilation statement summarizes the transactions of the cash statement as per the bank and…

Q: Which of the following provides the highest-quality evidence regarding the Valuation of recorded…

A: Performing the Analytical procedures provides the highest-quality evidence regarding the Valuation…

Q: Cash balance per bank Add: Deposits in transit Less: Outstanding checks Check Number 2451 2470 2471…

A: Bank reconciliation is prepared to find out the causes of difference between the balances of the…

Q: D a. The EFT credit was a receipt of rent. The EFT debit was an insurance payment. b. The NSF check…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through…

A: A bank reconciliation statement is a summary of banking and business activity that reconciles an…

Q: In reconciling a bank statement, when a check from the previous month appears on the bank statement…

A: A Bank Reconciliation Statement is a statement prepared on a particular day to reconcile the Bank…

Q: At October 31, Matrah Company has this bank information: cash balance per bank RO 8,950; outstanding…

Q: Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: a. Calculate the correct closing balance of the bank account in the general ledger of Pepper Traders…

A: In accounting for business and non business in both areas banks play vital role as…

Q: On March 31 of the current year, Fresh Flowers received a bank statement dated March 30. Prepare a…

A: A bank reconciliation statement is a summary of banking and business activity that reconciles an…

Q: On a 32 day notice deposit account, if you opt to withdraw funds sooner than the 32 day notice…

A: A 32-day notice deposit account is a special type of bank account that facilitates the multiple and…

Q: Prepare a reconciliation of the bank and book balances to the correct cash balance and provide the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: At the end of the month of July you close the books of your company and received the bank statement.…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: 1. NSF check from customer is returned on September 25 but not yet recorded by this company.…

A: Sometimes due to certain reasons the balance of the cash book and the bank statement doesn't…

Q: Prepare any necessary journal entries based on the following data regarding the bank reconciliation…

A: Journal entries, in the books of an entity, are recorded to prepare a daily report of the…

Q: Discuss three reasons why it is important for companies to prepare monthly bank reconciliations.

A: CONCEPT Bank Reconciliation is process in which bank statements are compared with company's…

Q: When completing a Bank Reconciliation Report, which tab do you select to enter the required dates?…

A: As the name sugests it is a summary of the reconciliation of the bank balance as per banks and as…

Q: The bank mistakenly withdraws a check amounting $75,000 on the company’s account. What is the…

Q: estion list Question 5 Data table Beginning Balance Deposits and other Credits: Dec. 1 Dec 5 Dec. 10…

A: Note/Definition: Bank reconciliation statement is the statement prepared by company on a particular…

Q: Outstanding checks for current period shall:

A: Outstanding checks are the check which are issued but not yet presented by other or cleared by bank.…

Q: What adjustment is required when a check written in a prior month appears on the bank statement for…

A: A bank statement is just a monthly document sent by a bank to its customers that lists the…

Q: Which of the following responses to an accounts receivable confirmation at December 31

Q: A bank reconciliation for October 31 follows. Bank statement balance Add: Deposit in transit Deduct:…

A: Ideally cash balance as per cashbook and bank balance as per bank statement must reconcile with each…

Q: If a company made a bank deposit on September 30 that did not appear on the bank statement dated…

A: AT the end of each the bank reconciliation statement is prepared to reconcile the balance of cash…

Q: You have been provided with the following information from the books of Zebra Traders: Information…

A: A bank reconciliation statement refers to the statement that matches the balance as per the bank…

Q: Bank Reconciliation REQUIRED: A. Based on the application of the necessary procedures and…

A: The bank reconciliation of Franc Company on July 31 is given to us. The data for the month ending…

Q: explain why it is important for a business to do a bank reconciliation monthly.

Q: Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank…

A: Bank reconciliation statement is prepared with a view to reconcile the balance as per entity's…

Q: 9. When preparing a check and you commit an error, what should you do? a. Get a pencil eraser and…

A: Since you have posted two question, we'll do the first one for you. To get the other question done…

Q: Please help.me to do part a and b. Thank you for your help

A: Requirement a: Prepare a bank reconciliation statement of Graser Company at December 31, 2019.

Q: Item 1. Checks outstanding on August 31 that cleared the bank in September. 2. Deposits mailed to…

A: A Bank Reconciliation is a statement showing the differences between the balance as shown in the…

Q: AUDIT TASK Make sure that the cash balance per bank shown on the bank reconciliation is verified by…

A: the relevant assertions and audit evidence for each audit task are given below

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

— Prepare bank reconciliation statement for the month of August.

— Prepare the adjusting entries.

Cash bałance per accounting period
Cash balance per bank statement
Bank service charge
1,719,000
3,195,000
10,000
Debit memo for the cost of printed checks delivered
by the bank, the charge has not been recorded
in the accounting record
12,000
685,000
500,000
Outstanding checks
Deposit of May 30 not recorded by bank until June 1
Proceeds of bank loan on May 30, not recorded in the
accounting record, net of interest of P30,000
Proceeds from a customer promissory note, principal
amount P800,000 collected by the bank not taken
up in the accounting record with interest
Check no. 1086 issued to a supplier entered in the
accounting record as 210,000 but deducted in the
bank statement at an erroneous amount of
Stolen check lacking unauthorized signature deducted from
Mcdo's account by the bank in error
Customer check returned by the bank marked NSF,
indicating that the customer balance was not
adequate to cover the check; no entry has been made
in the accounting record to record the returned check
570,000
810,000
120,000
80,000
77,000

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

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

Give typing answer with explanation and conclusion He writes a draft from his personal bank account payable to the power company. This draft is known as a(n) _____. certified check accord and satisfaction promissory note check non-negotiable instrument
How do I journalize this in the genral journal, what accounts would I use?
Assume you are a new hire in the accounting department of an organization. One of your responsibilities is the reconciliation of the operating account. After the end of the month you are given a copy of the bank statement and the cancelled checks, and are instructed to perform your reconciliation. You notice that there are some faint markings on a portion of the bank statement that could be alterations. What steps would you take in performing the reconciliation?
Required:1. Prepare a bank reconciliation as of February 28.2. Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation.3. What is the amount of cash that should be reported on the February 28 balance sheet?
prepare a bank reconciliation report.
The type of cash discount where the discount period is counted from the date of invoice is ___. a. Ordinary dating b. Credit period c. Receipt of goods d. End of the month
Use the following bank statement and T-account to prepare any journal entries needed as a result of the May 31 bank recor no entry Is requlred for a transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) BANK STATEMENT
Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?
Record any 5 imaginary transactions of a bank ( current account ) with a specific customer. Record journal entries including interest calculation
A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. Note: Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable. ItemBank BalanceBook BalanceDebit or Credit to Cash AccountShown or Not Shown on Reconciliation1. The company made a month-end accrual for expired insurance coverage. 2. Checks written and mailed to payees on October 2. 3. Night deposit made on September 30 after the bank closed. 4. Checks outstanding on August 31 that cleared the bank in September. 5. Bank service charge for September is not yet recorded by the company. 6. NSF check from a customer is shown on the bank statement but not yet recorded by the company. 7. Bank fees for check printing are not yet recorded by the…
Problem Solving. Required: 1. Prepare a properly classified bank reconciliation statement for each of the problems given below.2. Prepare the necessary adjusting journal entries on the company’s book for book reconciling items.
Miss Corina Cruz bank statement on September 30 showed a balance of P 26,091.20.Her checkbook showed a balance of P 23,305.70.She had noticed that checks # 13 for P 1,168.00 and # 18 for P 1,628.50 were outstanding.There was also a service charge of P 11.00. Prepare a bank reconciliation statement.