Question 2 Jordan Inc is trying to prepare a cash reconciliation for the month ended January 31, 2024. At that date, Jordan's books report a balance of $81,673 in their CIBC Chequing Account, and the balance on their January bank statement is $107,876. Jordan provides you with (1) the General Ledger which shows all the changes in the cash account during the year, and (2) a copy of the January bank statement. CIBC Chequing Account Description Opening balance Payment on account (cheque # 1348) Date Jan 1 Jan 5 Jan 10 Jan 10 Jan 15 Jan 15 Jan 20 Jan 25 Jan 25 Jan 27 Jan 30 Jan 31 Jan 31 BUS285 Date January 1 January 1 CIBC Bank Account 1025-5695-2751681 Cardholder: Jordan January 4 January 5 January 11 January 11 January 12 Beginning balance Plus Deposits Less Withdrawals Less Fees and interest Ending balance January 14 January 15. January 15 January 21 January 25 Cash out Interac machine Bank deposit Interac purchase - Tim Hortons Transfer to credit card payable Cash out Interac machine January 27 January 27 January 31 Jordan Inc. General Ledger Month ended January 31, 2024 Payment on account (cheque # 1349) Bank deposit Interac purchase - Staples Payment on account (cheque # 1350) Cash out Interac machine Bank deposit Lab 5: February 16 Description Opening balance Deposit Cheque 1347 EFT Transfer from Interac cash point EFT Deposit Cheque 1348 Tim Hortons Deposit Staples Service fees Account transfer - VISA Transfer from Interac cash point Interac E-transfer Debit 18,700 7,580 23,100 36,050 10,900 4,260 $ 45,820 97,080 34,997 27 $107,876 Transaction Amount 7,250 8,950 800 18,700 2,000 7,580 25,400 23 500 23,100 1,600 36,050 124 27 Credit 25,400 23 500 13,890 124 19,500 Balance Balance 40,520 15,120 33,820 41,400 41,377 40,877 63,977 50,087 86,137 86,013 66,513 77,413 81,673 45,820 53,070 44,120 44,920 63,620 65,620 73,200 47,800 47,777 47,277 70,377 71,977 108,027 107,903 107,876 The December 31, 2023 bank reconciliation shows two outstanding cheques (cheque # 1343 and #1347 for $3,600 and $8,950 respectively) and an outstanding deposit for $7,250). Required: Jordan is really struggling and has turned to you for help. (1) Prepare Jordan Inc.'s bank reconciliation for January 2024. (2) Prepare all necessary journal entries to be entered in Jordan's accounts.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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