Bank reconciliation : Bank reconciliation is prepared by an accountant. In order to check the differences between the cash book balance and bank balance as per bank statement, the bank reconciliation statement is prepared. It plays a major role in the internal control of cash and it ensures the management about the completeness of the cash book. To prepare: The bank reconciliation of EIG Incorporation as at December 31, 2018.

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Chapter 7, Problem 7.14P

(1)

To determine

Bank reconciliation:

Bank reconciliation is prepared by an accountant. In order to check the differences between the cash book balance and bank balance as per bank statement, the bank reconciliation statement is prepared. It plays a major role in the internal control of cash and it ensures the management about the completeness of the cash book.

To prepare: The bank reconciliation of EIG Incorporation as at December 31, 2018.

(2)

To determine

To prepare: The necessary adjusting journal entries.

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