Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 5, Problem 5.22E
To determine
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares
To Prepare:
The bank reconciliation statement
Expert Solution
Answer to Problem 5.22E
The bank reconciliation statement is as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
Explanation of Solution
The bank reconciliation statement is prepared as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
To determine
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side
To Indicate:
The cash balance to be reported in the
Expert Solution
Answer to Problem 5.22E
The cash balance to be reported in the balance sheet is $15,310
Explanation of Solution
The bank reconciliation statement is prepared as follows:
| Bank Reconciliation Statement | |||||
| As of August. 30 20Y9 | |||||
| Bank Side | Book Side | ||||
| Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
| Add: | Add: | ||||
| Deposit in transit | 2,175 | Note collected | 7,500 | ||
| Interest on note | 600 | ||||
| Check Error | 450 | 8,550 | |||
| Less: | Less: | ||||
| Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
| Reconciled Balance | 15,310 | Reconciled Balance | 15,310 | ||
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Define bank reconciliation.
Describe the purpose and steps of the bank reconciliation
Another way to describe account reconciliation is bank reconciliation—the process of bringing the balance of the bank statement and the balance of the cash account into agreement.
True
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Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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- What is the purpose of the bank reconciliation?arrow_forwardWhat are mistakes committed by the drawer? A. Bank errors B. Book errors C. Deposit in transit D. NSF Checkarrow_forwardExplain the relationship between the matching principle andthe need to estimate uncollectible accounts receivable.arrow_forward
- In preparing a bank reconciliation, explain how you would do the reconciliation if the bank statement showed a debit balance.arrow_forwardExplain the treatment of certified check for bank reconciliation purposesarrow_forwardWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? c. Direct deposit of paychecks.arrow_forward
- To minimize errors in the accounts payable function, which of the following procedures should be performed? approving the purchase requisition following up on open purchase orders double checking the math on the bank reconciliation matching the supplier’s invoice to the receiving reportarrow_forwardIn preparing a bank reconciliation, what is the proper treatment of a bank service charge?arrow_forwardWhich of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? a. Bank service charge b. Chargeback for NSF check c. Deposit in transit d. Bank interestarrow_forward
- Which of the following evidence provides the least assurance of reliability? A. Accounts receivable B. Sales invoice C. Vendor invoice D. Bank statementsarrow_forwardWhich of the following assertions is least likely tested by bank balance confirmation? * Existence Rights and obligations Completeness Valuation and allocation None of the abovearrow_forwardWhat are two methods of recording accounts receivabletransactions when a cash discount situation is involved?Which is more theoretically correct? Which is used inpractice more of the time? Why?arrow_forward
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