Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 5, Problem 5.23E
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
Requirement-1To Prepare:
The bank reconciliation statement
Expert Solution
Answer to Problem 5.23E
The bank reconciliation statement is as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
Explanation of Solution
The bank reconciliation statement is prepared as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
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
Requirement-2:
To Indicate:
The cash balance to be reported in the
Expert Solution
Answer to Problem 5.23E
The cash balance to be reported in the balance sheet is $15,310
Explanation of Solution
The bank reconciliation statement is prepared as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
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Students have asked these similar questions
Determine the amount of cash receipts stolen by the sales clerk. Round your answer to the nearest dollar .
Using bank reconciliation to determine cash receipts stolen
Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had
stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger
Cash according to the October 31, 20Y3, bank statement
Outstanding checks as of October 31, 2013
Bank service charge for October
Note receivable, including interest collected by bank in October
No deposits were in transit on October 31.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
$12,310
13,220
4,600
a. Determine the amount of cash receipts stolen by the sales clerk.
30
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b. What accounting controls would have prevented or…
Using Bank Reconciliation to Determine Cash Receipts Stolen
Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an
undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger
$11,680
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13,275
Outstanding checks as of October 31
3,670
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40
Note receivable, including interest collected by bank in October
2,100
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a. Determine the amount of cash receipts stolen by the sales clerk.
Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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- Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October: Cash in bank according to the general ledger $6,110 Cash according to the October 31, 20Y3, bank statement 14,115 Outstanding checks as of October 31, 20Y3 4,035 Bank service charge for October 20 Note receivable, including interest collected by bank in October 6,540 No deposits were in transit on October 31. a. Determine the amount of cash receipts stolen by the sales clerk.arrow_forwardUsing Bank Reconciliation to Determine Cash Receipts Stolen Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October: Cash in bank according to the general ledger $6,995 Cash according to the October 31 bank statement 16,160 Outstanding checks as of October 31 4,615 Bank service charge for October 20 Note receivable, including interest collected by bank in October 7,485 No deposits were in transit on October 31. a. Determine the amount of cash receipts stolen by the salesclerk.$fill in the blank 1 b. What accounting controls would have prevented or detected this theft?arrow_forwardAlaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions discovered during October 20Y3 that one of its sales clerks had stolen an undetermined amount of cash receipts by taking the daily deposits to the bank. The following data have been gathered for October: Cash in bank according to the general ledger $11,950 Cash according to the October 31, 20Y3, bank statement 14,125 Outstanding checks as of October 31, 20Y3 3,535 Bank service charge for October 30 Note receivable, including interest collected by bank in October 1,985 No deposits were in transit on October 31. A. Determine the amount of cash receipts stolen by the sales clerk. B. What accounting controls would have prevented or detected this theft? Cash receipts stolen A. Determine the amount of cash receipts stolen by the sales clerk. Final question B. What accounting controls would have prevented or…arrow_forward
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