(1) Explanation Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. Prepare bank reconciliation of Company C, as at September 30 . Company C Bank Reconciliation September 30 Updates to Bank Statement Updates to Company’s Books Ending cash balance per bank statement $230 Ending cash balance per books $2,650 Additions: Additions: Deposits in transit 2,500 EFT deposit 150 2,730 2,800 Deductions: Deductions: Outstanding checks 50 Bank service charge 20 NSF check 100 Up-to-date ending cash balance $2,680 Up-to-date ending cash balance $2,680 Table (1) Description: The deposits which are not recorded by the bank are referred to as deposits in transit... (2) To determine Prepare the adjusting journal entries that arise due to bank reconciliation (3) To determine Indicate the balance in Cash account, after posting the reconciliation entries (4) To determine Indicate the balance to be reported in the balance sheet as at September 30, after including the balance in petty cash on hand

5th Edition

ISBN: 9780078025914

Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby

Publisher: McGraw-Hill Education

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Chapter 5, Problem 5.6E

(1)

To determine

Prepare the bank reconciliation of Company C, as at September 30.

(2)

To determine

Prepare the adjusting journal entries that arise due to bank reconciliation

(3)

To determine

Indicate the balance in Cash account, after posting the reconciliation entries

(4)

To determine

Indicate the balance to be reported in the balance sheet as at September 30, after including the balance in petty cash on hand

Expert Solution & Answer

Chapter 5 Solutions

Fundamentals of Financial Accounting

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - What aspect(s) of the Sarbanes-Oxley Act might...Ch. 5 - Prob. 7Q Ch. 5 - What are the five components of an internal...Ch. 5 - Prob. 9Q Ch. 5 - Why is it a good idea to assign each task to only...

Ch. 5 - Prob. 11Q Ch. 5 - Prob. 12Q Ch. 5 - Prob. 13Q Ch. 5 - Prob. 14Q Ch. 5 - Prob. 15Q Ch. 5 - Prob. 16Q Ch. 5 - What is the primary internal control goal for cash...Ch. 5 - Prob. 18Q Ch. 5 - Prob. 19Q Ch. 5 - Prob. 20Q Ch. 5 - Prob. 21Q Ch. 5 - Prob. 22Q Ch. 5 - Prob. 23Q Ch. 5 - Prob. 24Q Ch. 5 - Prob. 1MC Ch. 5 - Prob. 2MC Ch. 5 - Prob. 3MC Ch. 5 - Prob. 4MC Ch. 5 - Which of the following internal control principles...Ch. 5 - Prob. 6MC Ch. 5 - Prob. 7MC Ch. 5 - Prob. 8MC Ch. 5 - Prob. 9MC Ch. 5 - Prob. 10MC Ch. 5 - Prob. 5.1ME Ch. 5 - Prob. 5.2ME Ch. 5 - Prob. 5.3ME Ch. 5 - Prob. 5.4ME Ch. 5 - Prob. 5.5ME Ch. 5 - Prob. 5.6ME Ch. 5 - Prob. 5.7ME Ch. 5 - Prob. 5.8ME Ch. 5 - Prob. 5.9ME Ch. 5 - Prob. 5.10ME Ch. 5 - Prob. 5.11ME Ch. 5 - Prob. 5.12ME Ch. 5 - Prob. 5.13ME Ch. 5 - Prob. 5.14ME Ch. 5 - Prob. 5.15ME Ch. 5 - Prob. 5.16ME Ch. 5 - Identifying Internal Control Principle and...Ch. 5 - Prob. 5.2E Ch. 5 - Prob. 5.3E Ch. 5 - Prob. 5.4E Ch. 5 - Prob. 5.5E Ch. 5 - Prob. 5.6E Ch. 5 - Prob. 5.7E Ch. 5 - Prob. 5.8E Ch. 5 - Prob. 5.9E Ch. 5 - Prob. 5.10E Ch. 5 - Prob. 5.1CP Ch. 5 - Prob. 5.2CP Ch. 5 - Prob. 5.3CP Ch. 5 - Prob. 5.4CP Ch. 5 - Prob. 5.1PA Ch. 5 - Prob. 5.2PA Ch. 5 - Prob. 5.3PA Ch. 5 - Prob. 5.4PA Ch. 5 - Prob. 5.1PB Ch. 5 - Prob. 5.2PB Ch. 5 - Prob. 5.3PB Ch. 5 - Prob. 5.4PB Ch. 5 - Recording Transactions and Adjustments,...Ch. 5 - Prob. 5.1SDC Ch. 5 - Prob. 5.2SDC Ch. 5 - Ethical Decision Making: A Real-Life Example When...Ch. 5 - Ethical Decision Making: A Mini-Case You are an...Ch. 5 - Accounting for Cash Receipts, Purchases, and Cash...

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The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bank

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