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 Indicate: The effect of bank reconciliation on accounts and financial statement

Question

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Answer 1

Question

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

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Multiple Choice 2-32 Educational Incentives (LO 2.14) Wendy is a single taxpayer and pays tuition of $7,800 in 2021. Her 2021 AGI is $66,000. What is the amount of Wendy's tuition deduction? X a. $2,000 O b. $0 O c. $3,733.33 O d. $4,000 O e. $7,800

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Answer 2

Question

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

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Answer 3

Question

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

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Answer 4

Question

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

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Answer 5

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Answer 6

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Answer 7

Chapter 5, Problem 5.3.2P

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 Indicate:

The effect of bank reconciliation on accounts and financial statement

Answer 8

Expert Solution & Answer

Answer to Problem 5.3.2P

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The bank reconciliation statement is prepared as follows:

All American Sports Co.
Bank Reconciliation Statement
As of Apr. 30, 20Y5

Bank Side			Book Side
Balance as per Bank statement		40,360	Balance as per Cash Book (23600+80150-72800)		30,950
Add:			Add:
Deposit in transit		9,275	Collection of Note	4,000
			Interest on Note	320
			Check Error (1100-110)	990	5,310

Less:			Less:
Outstanding Checks	(14,300)		NSF Check	(1,300)
Bank Error (720-270)	(450)	(14,750)	Bank Service Charges	(75)	(1,375)

Reconciled Balance		34,885	Reconciled Balance		34,885

The effect of bank reconciliation on accounts and financial statement is shown using adjusting journal entries as follows:

All American Sports Co.
Bank Reconciliation
Journal Entries

Date	Accounts titles and Explanation	Debit	Credit

Apr. 30	Cash	$ 4,320
	Interest Income		$ 320
	Notes Receivable		$ 4,000
	(Being note collected by bank)

Apr. 30	Cash	$ 990
	Accounts Payable		$ 990
	(Being adjustment made for error in check)

Oct. 31	Accounts Receivable	$ 1,300
	Cash		$ 1,300
	(Being adjustment made for NSF check)

Oct. 31	Bank Charges	$ 75
	Cash		$ 75
	(Being adjustment made for Bank Charges)

Answer 12

Ch. 5 - Prob. 1SEQ Ch. 5 - Prob. 2SEQ Ch. 5 - Prob. 3SEQ Ch. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQ Ch. 5 - Prob. 1CDQ Ch. 5 - Prob. 2CDQ Ch. 5 - Prob. 3CDQ Ch. 5 - Prob. 4CDQ Ch. 5 - Prob. 5CDQ

Concept explainers

Answer to Problem 5.3.2P

Explanation of Solution

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