Explanation Transactions recorded by the business, but not yet recorded by the bank. Generally, two types of transactions are recorded by the business, but not recorded by the bank in time to appear on the current statements: Outstanding checks and deposits in transit. Outstanding Checks: It’s a check that is issued by the company and recorded in its accounts but it has not been “Cashed” by the recipient of the check. The business has recorded the check as lowering its cash balance and the bank has not recorded the check as lowering the business account balance because it has not been cashed. For example, when a check is written during December but not cashed until January, the business’ December 31 cash balance will be lower than its account balance on the December 31 bank statement. Deposits in Transit: It’s an amount which is received and recorded by the company but which has not been recorded by the bank in time to appear on the current bank statement. Deposits in transit cause the bank balance to be smaller than the business cash account balance. It happens because most of the banks record any deposit received, after 2 or 3 P.M, in their records on the next business day.As business often make deposits on weekends or holidays when the bank is not open for business which could cause the deposit to appear on the next bank statement. Transactions recorded by the bank, but not yet recorded by the business...

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ISBN: 9781337690881

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Chapter 4, Problem 14DQ

To determine

Introduction:

Cash Account: The account that records all the details related to the amount paid or received in cash. It includes both the transactions of cash receipts and cash payments.

Bank Statement Balance: It’s a summary of financial transactions which have occurred during an accounting year by an individual or business with an organization.

The difference between a cash account and its associated bank statement balance.

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Chapter 4 Solutions

Cornerstones of Financial Accounting

Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ Ch. 4 - Prob. 6DQ Ch. 4 - Prob. 7DQ Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ

Ch. 4 - Prob. 11DQ Ch. 4 - Prob. 12DQ Ch. 4 - Prob. 13DQ Ch. 4 - Prob. 14DQ Ch. 4 - Prob. 15DQ Ch. 4 - Prob. 16DQ Ch. 4 - Prob. 17DQ Ch. 4 - Prob. 18DQ Ch. 4 - Prob. 19DQ Ch. 4 - Prob. 20DQ Ch. 4 - Prob. 21DQ Ch. 4 - Prob. 22DQ Ch. 4 - Prob. 1MCQ Ch. 4 - Prob. 2MCQ Ch. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQ Ch. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQ Ch. 4 - Prob. 7MCQ Ch. 4 - Prob. 8MCQ Ch. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQ Ch. 4 - Prob. 11MCQ Ch. 4 - Prob. 12MCQ Ch. 4 - Prob. 13MCQ Ch. 4 - Prob. 14MCQ Ch. 4 - Prob. 15MCQ Ch. 4 - Prob. 16CE Ch. 4 - Prob. 17CE Ch. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CE Ch. 4 - Prob. 20CE Ch. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CE Ch. 4 - Prob. 24CE Ch. 4 - Prob. 25BE Ch. 4 - Prob. 26BE Ch. 4 - Prob. 27BE Ch. 4 - Prob. 28BE Ch. 4 - Prob. 29BE Ch. 4 - Prob. 30BE Ch. 4 - Prob. 31BE Ch. 4 - Prob. 32BE Ch. 4 - Prob. 33BE Ch. 4 - Prob. 34BE Ch. 4 - Prob. 35BE Ch. 4 - Prob. 36BE Ch. 4 - Prob. 37BE Ch. 4 - Prob. 38BE Ch. 4 - Prob. 39E Ch. 4 - Prob. 40E Ch. 4 - Prob. 41E Ch. 4 - Prob. 42E Ch. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44E Ch. 4 - Prob. 45E Ch. 4 - Prob. 46E Ch. 4 - Prob. 47E Ch. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49E Ch. 4 - Prob. 50E Ch. 4 - Prob. 51E Ch. 4 - Prob. 52E Ch. 4 - Prob. 53E Ch. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSA Ch. 4 - Prob. 56APSA Ch. 4 - Prob. 57APSA Ch. 4 - Prob. 58APSA Ch. 4 - Prob. 59APSA Ch. 4 - Prob. 60APSA Ch. 4 - Prob. 61APSA Ch. 4 - Prob. 55BPSB Ch. 4 - Prob. 56BPSB Ch. 4 - Prob. 57BPSB Ch. 4 - Prob. 58BPSB Ch. 4 - Prob. 59BPSB Ch. 4 - Prob. 60BPSB Ch. 4 - Prob. 61BPSB Ch. 4 - Prob. 62.1C Ch. 4 - Prob. 62.2C Ch. 4 - Prob. 62.3C Ch. 4 - Prob. 62.4C Ch. 4 - Prob. 63.1C Ch. 4 - Prob. 63.2C Ch. 4 - Prob. 64.1C Ch. 4 - Prob. 64.2C Ch. 4 - Prob. 65C Ch. 4 - Prob. 66.1C Ch. 4 - Prob. 66.2C Ch. 4 - Prob. 67.1C Ch. 4 - Prob. 67.2C Ch. 4 - Prob. 68.1C Ch. 4 - Prob. 68.2C Ch. 4 - Prob. 68.3C Ch. 4 - Prob. 68.4C Ch. 4 - Prob. 69.1C Ch. 4 - Prob. 69.2C Ch. 4 - Prob. 69.3C Ch. 4 - Prob. 69.4C Ch. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2C Ch. 4 - Prob. 70.3C Ch. 4 - Prob. 70.4C

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