Survey of Accounting - With CengageNOW 1Term
8th Edition
ISBN: 9781337379823
Author: WARREN
Publisher: Cengage
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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
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
| 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 | 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
| 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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Chapter 5 Solutions
Survey of Accounting - With CengageNOW 1Term
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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