FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 7, Problem 7.9E
(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.
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in
stockholders’ equity accounts. - Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
To determine: Adjusted cash balance per bank
(b)
To determine
Adjusted cash balance per books
(c)
To determine
To prepare:
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Students have asked these similar questions
Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1.
Record the entry related to the September 30 deposit, if required.
2.
Record the entry related to interest earned, if required.
3.
Record the entry related to the note receivable collected, if required.
4.
Record the entry related to the outstanding checks, if required.
5.
Record the entry related to the NSF check, if required.
6
Record the entry related to the error on check 5904, if required.
For the following question, reconcile the bank statement and check register. Would they need to make an adjustment or does everything reconcile?
Sylvia’s checkbook balance on July 31 is $389.32. The information on her bank statement is given below. The outstanding checks, unrecorded deposits, and unrecorded ATM transactions are listed here also. From this information will her account reconcile?
Bank statement: $434.30; Interest: $0.79; Service charge: $2.75
Outstanding checks: #911: $53.29; #912: $31.16; #913: $20.04; #920: $11.42; #923: $24.50; #925: $16.90; #930: $33.30; #932: $8.70; #933: $10.55. Unrecorded deposits ATM: 7/30: $183.52; 7/31: $69.40. Unrecorded ATM withdrawals: 7/30: $40.00; 7/31: $50.00
Bank Statement Reconcile Amount:
Check Register Reconcile Amount:
For each item that follows, select Yes/No in the appropriate columns to indicate whether the Item should be added to or deducted
from the book or bank balance of September, or whether It should not appear on the reconciliation. If the book balance is to be
adjusted, select Dr. or Cr. In the Must Adjust column to Indicate whether the Cash balance should be debited or credited.
Bank Balance of September
Book Balance of September
Not Shown
on the
Reconciliation
Must
Add
Deduct
Add
Deduct
Adjust
1. Interest income eamed on the account.
2. Deposit made on September 30 after the bank was closed.
Cheques outstanding on August 31 that cleared the bank in
3.
September.
NSF cheque from customer returned on September 15 but not
4.
recorded by the company.
5. Cheques written and mailed to payees on September 30.
Deposit made on September 5 that was processed on
6.
September 8.
7. Bank service charge.
8. Cheques written and mailed to payees on October 5.
Cheques written by another company but…
Chapter 7 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Prob. 7.5BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.8BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.15BECh. 7 - Prob. 7.16BECh. 7 - Prob. 7.17BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4aDIECh. 7 - Prob. 7.4bDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.1IECh. 7 - Prob. 7.2IE
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- Mpho cannot understand why the balance of her bank account in the general ledger does not balance to the monthly bank statement that she receives from the bank. Required: Give Mpho three (3) reasons why a difference may occur between the balance of her bank account in the general ledger and the balance on the monthly bank statement. For each reason briefly explain, in your own words, why the difference arises. Provide one example of each reason.arrow_forward1)Prepare a bank reconciliation for Daryl Swan to determine how much cash Swan actually has at October 31, 2019? 2)By using the data from above, make the following journal entries that Swan should record on October 31 to update her Cash account. 2a)T o account for the EFT collection of rent 2b)To account for NSF cheques returned by the bank. 2c)To correct the error in recording the salary of the part-time employee.arrow_forwardIndicate whether each item should be added to or deducted from the book or bank balance and whether it should or should not appear on the September 30 reconciliation. For items that add or deduct from the book balance column, place a Dr. or Cr. after the “Add” or “Deduct” to show the accounting impact on Cash. 1. NSF check from a customer is shown on the bank statement but not yet recorded by the company. 2. Interest earned on the September cash balance in the bank is not yet recorded by the company. 3. Deposit made on September 5 and processed by the bank on September 6. 4. Checks written by another depositor but mistakenly charged against this company’s account. 5. Bank service charge for September is not yet recorded by the company. 6. Checks outstanding on August 31 that cleared the bank in September. 7. Check written against the company’s account and cleared by the bank; erroneously not recorded by the company’s recordkeeper. 8. A note receivable is collected by the bank for the…arrow_forward
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