Accounting: What the Numbers Mean
Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Question
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Chapter 5, Problem 5.1ME
To determine

Concept Introduction:

Bank Reconciliation:

Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side

To Prepare:

The Bank Reconciliation statement

Expert Solution & Answer
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Answer to Problem 5.1ME

The Bank Reconciliation statement is as follows:

    Happ Inc.
    Bank Reconciliation Statement
    As of Sept., 30
    Bank SideBook Side
    Balance as per Bank statement
    $ 22,260
    Balance as per Cash Book
    $ 24,860
    Add:Add:
    Deposit in transit
    $ 2,400
    Interest earned
    $ 80
    Less:Less:
    Outstanding Checks
    $ 760
    NSF Checks
    $ 900
    Bank Service Charges
    $ 140
    $ 1,040
    Reconciled Balance$ 23,900Reconciled Balance$ 23,900

Explanation of Solution

The Bank Reconciliation statement is explained as follows:

    Happ Inc.
    Bank Reconciliation Statement
    As of Sept., 30
    Bank SideBook Side
    Balance as per Bank statement
    $ 22,260
    Balance as per Cash Book
    $ 24,860
    Add:Add:
    Deposit in transit
    $ 2,400
    Interest earned
    $ 80
    Less:Less:
    Outstanding Checks
    $ 760
    NSF Checks
    $ 900
    Bank Service Charges
    $ 140
    $ 1,040
    Reconciled Balance$ 23,900Reconciled Balance$ 23,900

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Chapter 5 Solutions

Accounting: What the Numbers Mean

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