Summary: Internal Control and CashExplanation: BC-bank collection of note receivable from customer, EFT-electronic funds transfer,US-unauthorized signature, SC-service chargeAdditional data for the bank reconciliation include the following:a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurancepayment.b. The unauthorized signature check was received from a customer and returned by the bankunpaid.c. The correct amount of check number 3115, a payment on account, is $1,390. (DuffyAutomotive's accountant mistakenly recorded the check as $1,930.)Requirements1. Prepare Duffy Automotive's bank reconciliation at May 31, 2021.2. Prepare the journal entries required at May 31, 2021.3. Describe how a bank account and the bank reconciliation help the general manager controlDuffy Automotive's cash.

Step 1:To prepare Duffy Automotive's bank reconciliation and the related journal entries for May 31,…

Answered: Summary: Internal Control and Cash…

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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Identify whether each of the following items would be (a) added to the book balance, (b) deducted from the book balance in a bank reconciliation, (c) added to the bank balance, or (d) deducted from the bank balance. 1. Deposits in transit Deducted from the bank balance Deducted from the book balance 2. Bank service charge Added to the book balance Added to the bank balance 3. Collection of note and interest by bank on company's behalf NSF check 5. Outstanding checks > > 4.
List of Auditing Procedures A. Trace to cash receipts journal. B. Trace to cash disbursements journal. C. Compare to 9/30/X5 general ledger. D. Confirm directly with bank. E. Inspect bank credit memo. F. Inspect bank debit memo. G. Ascertain reason for unusual delay. H. Inspect supporting documents for reconciling item not appearing on cutoff statement. I. Trace items on the bank reconciliation to cutoff statement. J. Trace items on the cutoff statement to bank reconciliation. GENERAL COMPANY Bank Reconciliation 1st National Bank of US Bank Account a. Select 2 procedures b. Select 5 procedures September 30, 20X5 Balance per bank Deposits in transit 9/29/X5 9/30/X5 S 30,300 $ 925 1,175 2,100 32,400 c. Select 5 procedures Outstanding checks #988 8/31/X5 900 #1281 9/26/X5 600 #1285 9/27/X5 350 #1289 9/29/X5 900 #1292 9/30/X5 325 (3,075) 29,325 d. Select 1 procedure e. Select 2 procedures f. Select 1 procedure Customer note collected by bank Error: Check #1282; written on 9/26/X5 for $350…
The bank made a mistake in registering the value of an incoming check to the company's account by recording it as 700 dinars instead of 800 dinars. Required: 1- How to act on that mistake when preparing the bank reconciliation with the company? 2- The registration procedure obligatory for the company
In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. suthrachod from the bank balance.
Items on company bank statement: 1. Bank correction of an error from posting another customers check(disbursement) to the company account 2. EFT deposit 3. Loan proceeds 4. NSF. Using the following format indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company account.
Solve this problem
The preparation of monthly bank account reconciliations is an internal control in place to detect misstatements in cash. Question 46 options: True False
In a bank reconciliation, an outstanding check isa. deducted from the book balance.b. deducted from the bank balance.c. added to the bank balance.d. added to the book balance.
Which cash reconciling item could potentially affect either the bank statement or the general ledger? Multiple Choice Outstanding deposit Recording error Interest earned on notes held by the bank NSF checks
In a bank reconciliation, an EFT cash payment is A. added to the bank balance in the general ledger B. deducted from the bank balance on the bank statement C. added to the bank balance on the bank statement D. deducted from the bank balance in the general ledger
In preparing its August 31 bank reconciliation, Apex Corp. has available the following balance per bank and reconciling items: Balance per bank Deposit in transit Erroneous charge (deduction) made by bank Outstanding checks Collection from customer by bank The 8/31 unadjusted cash balance per books is: Select one: a. $19,250 b. $18,550 c. $18,050 d. $19,050 e. $17,850 $ 18,050 3,250 100 2,750 600
Indicate whether each transaction would require an adjustment to the bank balance or the book balance when reconciling cash. Interest earned on the cash balance per the bank Choose. statement Minimum balance bank fee charged on the bank Choose. statement Collecton on a note from a customer as indicated on the Choose. bank statement NSF check received from a customer as revealed on the Choose. bank statement Outstanding checks Choose. Bank service charge on the bank statement Choose.

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