Bank Reconciliation Statement : A bank reconciliation statement is prepared to project the causes of the difference between the bank account balance as per the bank statement and the bank balance as per the accounting records. There can be multiple reasons why these two balances may appear to be different. Some of the examples may be that checks issued but not cleared by the bank, checks received from the customer deposited into the bank but not reflected in the statement, check from a customer returned due to insufficiency of funds, direct debit due to bank charges, etc. The ending balance as per the bank statement and the accounting records should be the starting point and all the necessary adjustments are to be made to or from both of these balances to arrive at a common balance called Adjusted Balance. While arriving at the uniform adjusted balance proves the accuracy of the bank reconciliation statement. To prepare: The bank reconciliation statement as of March 31 s t , 2022.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 6SP

1

To determine

Bank Reconciliation Statement:

A bank reconciliation statement is prepared to project the causes of the difference between the bank account balance as per the bank statement and the bank balance as per the accounting records. There can be multiple reasons why these two balances may appear to be different. Some of the examples may be that checks issued but not cleared by the bank, checks received from the customer deposited into the bank but not reflected in the statement, check from a customer returned due to insufficiency of funds, direct debit due to bank charges, etc.

The ending balance as per the bank statement and the accounting records should be the starting point and all the necessary adjustments are to be made to or from both of these balances to arrive at a common balance called Adjusted Balance. While arriving at the uniform adjusted balance proves the accuracy of the bank reconciliation statement.

To prepare: The bank reconciliation statement as of March 31^s^t, 2022.

2

To determine

Journal Entries:

The month-end journal entries are required to be passed for only those entries affecting the accounting balance for adjusting the book balance to the reconciled balance. These entries will alter the cash balance and bring it up to the adjusted or reconciled balance.

To prepare: The journal entries as of March 31^s^t 2022 registering the reasons for differences between the balance as per the statement and as per the books.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Brentwood Manufacturing forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 240,000 hours. Year to date, the actual overhead is $13,200,000, and the actual machine hours are 260,000 hours. Suppose Brentwood Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead as of this point in time (year to date). In that case, the overhead is?

Overview You have learned about big corporate fraud in this course such as Enron and WorldCom, but fraud can happen in any organization. Examine a case that addresses the importance of internal controls, including how the fraud triangle can aid in an investigation and how to find missing cash. Prepare View the media activity, Employee Fraud at Miami Rehabilitation CenterLinks to an external site.. It provides information about a case of fraud that you will address in the assignment. Instructions Based on what you discovered in the media piece, (not including cover and reference pages) paper that addresses the following: Like fuel, air, and heat come together to make fire, the likelihood of fraud increases when the three elements of the fraud triangle come together. Analyze how the 3 elements of the fraud triangle are important and how all 3 elements were present in Helen's case. In 2006, The Committee of Sponsoring Organizations (COSO) published a small company version of its 1992…

Variable manufacturing overhead:28000, fixed manufacturing overhead:120000