QUESTION 3A bank reconciliation should be prepared periodically becausea. the company's records and the bank's records are in agreementb. the bank has not recorded all of its transactionsc. the bank must make sure that its records are correctd. any differences between the company's records and the bank's records should be determined, and any errors made by either party should bediscovered and corrected

Introduction:- A bank reconciliation statement is a document that compares the cash balance on a…

QUESTION 3 A bank reconciliation should be prepared periodically because O a. the company's records and the bank's records are in agreement Ob. the bank has not recorded all of its transactions Oc. the bank must make sure that its records are correct O d. any differences between the company's records and the bank's records should be determined, and any errors made by either party shou discovered and corrected

QUESTION 3 A bank reconciliation should be prepared periodically because O a. the company's records and the bank's records are in agreement Ob. the bank has not recorded all of its transactions Oc. the bank must make sure that its records are correct O d. any differences between the company's records and the bank's records should be determined, and any errors made by either party shou discovered and corrected

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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Certainly! Here's a detailed information on bank reconciliation presented in table format: Bank Reconciliation Information: Key Components Definition Purpose Frequency Steps in Bank Reconciliation Common Adjustments Importance of Bank Reconciliation Explanation. Bank reconciliation is a process that compares the cash balance in a company's accounting records with the balance in its bank statement. - Identify discrepancies between the company's records and the bank statement. - Ensure accuracy and completeness of financial records. Detect errors, fraud, or unauthorized transactions. Typically performed monthly, but can be more frequent for larger transactions or to catch discrepancies early. 1. Start with the ending balance of the bank statement. 2. Add deposits in transit (deposits made but not yet recorded by the bank). 3. Deduct outstanding checks (checks written but not yet cleared by the bank). 4. Add or deduct bank errors (errors made by the bank in recording transactions). 5.…
During a bank reconciliation process, Oa. outstanding checks and deposits in transit are subtracted from the bank statement balance Ob. outstanding checks are added and deposits in transit are subtracted from the bank statement balance Oc. outstanding checks and deposits in transit are added to the bank statement balance Od. outstanding checks are subtracted and deposits in transit are added to the bank statement balance
Current Attempt in Progress Identify whether each of the following items would be (a) added to the book balance, or (b) deducted from the book balance in a bank reconciliation. 1. 2 3. 4. 5. EFT transfer to a supplier. Bank service charge. Check printing charge. Error recording check # 214 which was written for $260 but recorded for $620. Collection of note and interest by the bank on the company's behalf.
A Moving to another question will save this response. Question 11 On a bank reconciliation, the amount of NSF checks not yet recorded by the company should be: A. Added to the bank balance of cash. В. Deducted from the bank balance of cash. C. Deducted from the book balance of cash. D. Added to the book balance of cash. Moving to another question will save this response.
5. If the cash balance shown on a company’s accounting records is less than the correct cash balance and neither the company nor the bank has made any errors, there must be a. Deposits credited by the bank but not yet recorded by the company b. Outstanding checks c. Deposits in transit d. Bank charges not yet recorded by the company
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.
In a bank reconciliation, outstanding checks are recorded by the __________, but not yet by the __________. Multiple Choice vendor; bank bank; vendor bank; company company; bank
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Bradford Company: Balance per bank $ 17,400 Balance per company records 8,195 Bank service charges Deposit in transit Note collected by bank with $130 interest Outstanding checks a. What is the adjusted balance on the bank reconciliation? 45 3,100 4,900 7,450 b. Journalize any necessary entries for Bradford Company based on the bank reconciliation. If an amount box does not require an entry, leave it blank.
QUESTION 5 On the bank reconciliation, deposits in transit are: a. an addition to the balance per bank statement b. a deduction to the balance per bank statement c. an addition to the company's records d. a deduction to the company's records
If a check correctly written and paid by the bank for $512 is incorrectly recorded in the company's books for $443, how should this error be treated on the bank reconciliation?