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. The most common reasons that bring out the difference between the book and bank cash balance are as follows: Deposit in transit refers to the deposits that have not been reached or recorded by the bank before the statement is being prepared. Outstanding checks are the checks that are issued by the depositor but not presented to the bank for payment before the statement is prepared...

3rd Edition

ISBN: 9781337709354

Author: WAHLEN

Publisher: CENGAGE L

See similar textbooks

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 6, Problem 26GI

To determine

Explain the term bank reconciliation and also list out the causes that bring out the difference between the book and bank cash balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 6, Problem 25GI

Chapter 6, Problem 27GI

Students have asked these similar questions

Need help with this accounting questions

What is the income tax expense in year 3 on these financial accounting question?

Need help with this general accounting question

Chapter 6 Solutions

INTERM.ACCT.:REPORTING...-CENGAGENOWV2

Ch. 6 - What are the components of cash? What items may be...Ch. 6 - Prob. 2GI Ch. 6 - Prob. 3GI Ch. 6 - Prob. 4GI Ch. 6 - Prob. 5GI Ch. 6 - How are trade receivables different from nontrade...Ch. 6 - How is revenue recognition related to the...Ch. 6 - Prob. 8GI Ch. 6 - Prob. 9GI Ch. 6 - What is a sales return? A sales allowance?...

Ch. 6 - Discuss the differences between the allowance...Ch. 6 - Prob. 12GI Ch. 6 - Prob. 13GI Ch. 6 - What method of bad debt estimation categorizes...Ch. 6 - Why does the write-off of uncollectible accounts...Ch. 6 - Discuss the difference between a secured borrowing...Ch. 6 - When does a company record the transfer of...Ch. 6 - Prob. 18GI Ch. 6 - What is a non-interest-bearing note? How does...Ch. 6 - Prob. 20GI Ch. 6 - How are the cash proceeds determined when a note...Ch. 6 - Under IFRS, what criteria must be satisfied in...Ch. 6 - Prob. 23GI Ch. 6 - (Appendix 6. 1) What is the purpose of a petty...Ch. 6 - (Appendix 6. 7) Why are actual expenses, rather...Ch. 6 - Prob. 26GI Ch. 6 - Prob. 27GI Ch. 6 - Prob. 1MC Ch. 6 - Greenfield Company had the following cash balances...Ch. 6 - A company is in its first year of operations and...Ch. 6 - Marmol Corporation uses the allowance method for...Ch. 6 - On January 1, 2019, King Companys Allowance for...Ch. 6 - Prior to adjustments, Barrett Companys account...Ch. 6 - A method of estimating bad debts that focuses on...Ch. 6 - When the accounts receivable of a company are sold...Ch. 6 - Prob. 9MC Ch. 6 - Prob. 10MC Ch. 6 - Prob. 11MC Ch. 6 - On December 31, Harrison Company reports the...Ch. 6 - Lindley Enterprises sells hand woven rugs. Paige...Ch. 6 - Long Corporation is a fabric manufacturing...Ch. 6 - Refer to RE6-3. Assume Long records accounts...Ch. 6 - Longmire Sons nude sales un credit to Alderman...Ch. 6 - Refer to RE6-5. Assume Longmire uses a perpetual...Ch. 6 - McKinney Co. estimates its uncollectible accounts...Ch. 6 - Refer to RE6-7. At the end of the first quarter of...Ch. 6 - Refer to RE6-8. On April 23, 2020, McKinncy Co....Ch. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1 of the current year, Jordan Inc....Ch. 6 - On December 1, Newton Enterprises sells 100,000 of...Ch. 6 - Kaseys Cake Shop made 20,000 in sales of wedding...Ch. 6 - On June 1, Phillips Corporation sold, with...Ch. 6 - Prob. 15RE Ch. 6 - Prob. 16RE Ch. 6 - Computing; the Cash Balance Listed below are ten...Ch. 6 - Prob. 2E Ch. 6 - Journal Entry to Separate Receivables An...Ch. 6 - Prob. 4E Ch. 6 - Prob. 5E Ch. 6 - Prob. 6E Ch. 6 - Accounts Receivable Calculations The following...Ch. 6 - Estimation versus Direct Write-Off of Bad Debts...Ch. 6 - Estimating Bad Debts from Receivables Balances The...Ch. 6 - Aging Analysis of Accounts Receivable Cowens, a...Ch. 6 - Comparison of Bad Debt Estimation Methods Bradford...Ch. 6 - Inferring Accounts Receivable Amounts At the end...Ch. 6 - ReceivablesBad Debts At January 1, 2019, the...Ch. 6 - Transferring Accounts Receivable White Corporation...Ch. 6 - Transfer of Accounts Receivable Inder Corporation...Ch. 6 - Generating Cash from Receivables Guide Company...Ch. 6 - Interest-Bearing and Non-Interest-Bearing Notes On...Ch. 6 - Computing the Proceeds from the Sale of Notes...Ch. 6 - Recording the Sale of Notes Receivable Singer...Ch. 6 - Prob. 20E Ch. 6 - Prob. 21E Ch. 6 - Prob. 22E Ch. 6 - Prob. 23E Ch. 6 - Prob. 24E Ch. 6 - Prob. 1P Ch. 6 - Prob. 2P Ch. 6 - Estimating Bad Debts Keegan Corporations...Ch. 6 - Allowance for Bad Accounts Installment Jewelry...Ch. 6 - Allowance for Doubtful Accounts From inception of...Ch. 6 - Prob. 6P Ch. 6 - Aging Accounts Receivable On September 30. 2019...Ch. 6 - Prob. 8P Ch. 6 - Prob. 9P Ch. 6 - Prob. 10P Ch. 6 - Factoring and Assignment of Accounts Receivable...Ch. 6 - Recording Note Transactions The following...Ch. 6 - Notes Receivable Transactions The following notes...Ch. 6 - Analyzing Accounts Receivable Upham Companys June...Ch. 6 - Comprehensive Receivables Problem Blackmon...Ch. 6 - Prob. 16P Ch. 6 - Unknown Book Balance (Appendix 6.1) The following...Ch. 6 - Prob. 18P Ch. 6 - Prob. 19P Ch. 6 - Prob. 1C Ch. 6 - Prob. 2C Ch. 6 - Bad Debt Expense When a company has a policy of...Ch. 6 - Prob. 4C Ch. 6 - Receivables Issues Magrath Company has an...Ch. 6 - Components of Cash Cash is an important asset of a...Ch. 6 - Prob. 7C Ch. 6 - Transfer of Accounts and Notes Receivable Tidal...Ch. 6 - Ethics and Sales Returns At the end of 2019, the...Ch. 6 - Analyzing Starbuckss Cash and Receivables...Ch. 6 - Researching GAAP Situation Hamilton Company...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Explain the term bank reconciliation and also list out the causes that bring out the difference between the book and bank cash balance.

Solution Summary: The author explains the term bank reconciliation and lists the causes that bring out the difference between the book and the bank cash balance.

Concept explainers

Explain the term bank reconciliation and also list out the causes that bring out the difference between the book and bank cash balance.

Want to see the full answer?

Chapter 6 Solutions