Identify the error made by Person NS while preparing bank reconciliation.

Question

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Answer 1

Question

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

2.

To determine

Determine the correct cash balance of Person NS.

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

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Students have asked these similar questions

Which of the following statements is true? A. Window dressing is a practice of closing the books of accounts at the end of the accounting period for a better financial position and performance. B. Lapping is a transfer of cash from one bank to another bank. C. Kiting consists of misappropriating a collection from one customer and concealing this defalcation when collection is made from another customer. D. The imprest system required that all cash receipts should be deposited intact and all cash payments should be made by means of check.

Which of the following statements about reconciling items is true? A Debit memoranda should be subtracted from the book side of the bank reconciliation. B An NSF check returned to the bank should be added back to book cash. C If a company discovers errors in its general ledger Cash account, it should call the bank to have the errors corrected. D Adjustments to the bank side of the bank reconciliation should be booked as adjustments to the general ledger Cash account. Please advise, the answer D is correct?

Question: The following errors were found when the controller at Mountain Motel was doing the June 30 bank reconciliation. On June 25, the bank posted a cheque in the amount of $825 to Mountain’s bank account. The cheque had been written by another company, Mountainside Company. For each of these errors, (a) indicate if and how it would be shown on the bank reconciliation, and (b) prepare the journal entry for Mountain if required. Please explain for the answer.

Answer 2

Question

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

2.

To determine

Determine the correct cash balance of Person NS.

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

2.

To determine

Determine the correct cash balance of Person NS.

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

2.

To determine

Determine the correct cash balance of Person NS.

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

2.

To determine

Determine the correct cash balance of Person NS.

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Answer 6

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

Answer 7

Chapter 4, Problem 36EB

1.

To determine

Identify the error made by Person NS while preparing bank reconciliation.

Answer 8

2.

To determine

Determine the correct cash balance of Person NS.

Answer 9

2.

To determine

Determine the correct cash balance of Person NS.

Answer 10

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Answer 11

3.

To determine

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 4 - Prob. 1YT Ch. 4 - Prob. 2YT Ch. 4 - Suppose at the end of the year Pendleton Corp.s...Ch. 4 - Prob. 4YT Ch. 4 - Prob. 5YT Ch. 4 - Prob. 6YT Ch. 4 - Prob. 7YT Ch. 4 - Prob. 1Q Ch. 4 - Prob. 2Q Ch. 4 - Prob. 3Q

Identify the error made by Person NS while preparing bank reconciliation.

Solution Summary: The author explains the errors made by Person NS while preparing bank reconciliation. Deposit in transit must be added to the bank balance and not deducted from the book balance.

Concept explainers

Identify the error made by Person NS while preparing bank reconciliation.

Determine the correct cash balance of Person NS.

Provide the adjustment in the accounting equation that need to be updated with company’s cash balance.

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Chapter 4 Solutions