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

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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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METLOCK COMPANY Comparative Balance Sheet Assets Dec. 31, 2025 Dec. 31, 2024 Cash $33,900 $12,500 Accounts receivable 17,500 14,500 Inventory Prepaid insurance Stock investments 26,400 19,200 8,500 10,000 -0- 15,700 Equipment Accumulated depreciation-equipment Total assets 88,000 44,000 (15,500) (14,800) $158,800 $101,100 Liabilities and Stockholders' Equity Accounts payable $34,700 $7,900 Bonds payable 37,000 49,400 Common stock 40,400 24,300 Retained earnings 46,700 19,500 Total liabilities and stockholder's equity $158,800 $101,100 Additional information: 1 Net income for the year ending December 31, 2025 was $36,000. 2 Cash dividends of $8,800 were declared and paid during the year. 3. Stock investments that had a book value of $15,700 were sold for $12,000. 4. Sales for 2025 are $150,000. Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesise.g.…

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Financial accounting

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

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Answer to Problem 5.3.2P

Explanation of Solution

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