The following is a comprehensive problem which encompasses all of the elements learmed in previous chapters. You can refer to the objectives for each chapter covered as a review of theconcepts.Note: You must complete part 1 before completing part 2.Based on the following data, prepare a bank reconciliation for December of the current year:a. Balance according to the bank statement at December 31, $283,000.b. Balance according to the ledger at December 31, $245,410.c. Checks outstanding at December 31, $68,540.d. Deposit in transit, not recorded by bank, $29,500.e. Bank debit memo for service charges, $750.T. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.Kornett CompanyBank ReconciliationDecember 31, 20YSCash balance according to bank statement283,000Add deposit in transit, not recorded by bank29,500Deduct outstanding checks-68,540Adjusted balance243,960Cash balance according to company's records245,410Deduct:Bank service charges-750Error in recording check-700Adjusted balance243,960

Bank Reconciliation in accounting means the process of matching the pass book issued by bank with…

You must complete part 1 before completing part 2. on the following data, prepare a bank reconciliation for December of the ca nce according to the bank statement at December 31, $283,000. nce according to the ledger at December 31, $245,410. ks outstanding at December 31, $68,540. osit in transit, not recorded by bank, $29,500. debit memo for service charges, $750. eck for $12,700 in payment of an invoice was incorrectly recorded in the a

You must complete part 1 before completing part 2. on the following data, prepare a bank reconciliation for December of the ca nce according to the bank statement at December 31, $283,000. nce according to the ledger at December 31, $245,410. ks outstanding at December 31, $68,540. osit in transit, not recorded by bank, $29,500. debit memo for service charges, $750. eck for $12,700 in payment of an invoice was incorrectly recorded in the a

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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14. Prepare the bank reconciliation statement using the following data and also record the necessary journal entry to reconcile the statement: Bank Balance = $4,487 Book Balance = $5,899 Interest income = $35 Deposit in transit = $1,590 NSF check = $586 Outstanding checks = $729
Using the following information: a. The bank statement balance is $4,265. b. The cash account balance is $4,448. c. Outstanding checks amount to $835. d. Deposits in transit are $954. e. The bank service charge is $55. f. A check for $37 for supplies was recorded as $28 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation Line Item Description May 31 Amount Amount Cash balance according to bank statement Adjusted balance Cash balance according to company's records Total deductions Adjusted balance
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