Chapter 7, Problem 7.11BE

(a)

To determine

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.

To indicate: The items that will require adjustment in depositor’s records

(b)

To determine

To indicate: The reason for not requiring adjustment for other items