a. Explanation 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. Prepare bank reconciliation statement of Company CD. Company CD Bank Reconciliation Statement August 31, 20Y6 Particulars Amount ($) Amount ($) Cash balance according to bank statement $56,300 Adjustments: b. To determine Compute the amount of cash to be shown by Company CD on the balance sheet . c. To determine Comment on the balances always being reconciled in the bank reconciliation.

15th Edition

ISBN: 9781337902663

Author: WARREN, Carl S.

Publisher: Cengage Learning,

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Chapter 7, Problem 18E

To determine

Compute the adjusted balance on the bank reconciliation.

To determine

Compute the amount of cash to be shown by Company CD on the balance sheet.

To determine

Comment on the balances always being reconciled in the bank reconciliation.

Expert Solution & Answer

Chapter 7 Solutions

Financial And Managerial Accounting

Ch. 7 - Prob. 1DQ Ch. 7 - Why should the employee who handles cash receipts...Ch. 7 - Prob. 3DQ Ch. 7 - Why should the responsibility for maintaining the...Ch. 7 - Prob. 5DQ Ch. 7 - Prob. 6DQ Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

Ch. 7 - Prob. 1BE Ch. 7 - Prob. 2BE Ch. 7 - Prob. 3BE Ch. 7 - Prob. 4BE Ch. 7 - Prob. 5BE Ch. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Prob. 2E Ch. 7 - Prob. 3E Ch. 7 - Prob. 4E Ch. 7 - Prob. 5E Ch. 7 - Prob. 6E Ch. 7 - Prob. 7E Ch. 7 - Prob. 8E Ch. 7 - Prob. 9E Ch. 7 - Prob. 10E Ch. 7 - Prob. 11E Ch. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Prob. 14E Ch. 7 - Prob. 15E Ch. 7 - Prob. 16E Ch. 7 - Prob. 17E Ch. 7 - Prob. 18E Ch. 7 - Prob. 19E Ch. 7 - Prob. 20E Ch. 7 - Prob. 21E Ch. 7 - Prob. 22E Ch. 7 - Prob. 23E Ch. 7 - Prob. 24E Ch. 7 - Prob. 1PA Ch. 7 - Prob. 2PA Ch. 7 - Prob. 3PA Ch. 7 - Prob. 4PA Ch. 7 - Prob. 5PA Ch. 7 - Prob. 1PB Ch. 7 - Prob. 2PB Ch. 7 - Prob. 3PB Ch. 7 - Prob. 4PB Ch. 7 - Prob. 5PB Ch. 7 - Analyze and compare Amazon.com to Netflix...Ch. 7 - Analyze and compare J. C. Penney and Macys J. C....Ch. 7 - Prob. 3MAD Ch. 7 - Prob. 4MAD Ch. 7 - Analyze and compare Nike, lululemon, and Under...Ch. 7 - Ethics in Action Tehra Dactyl is an accountant for...Ch. 7 - Bank error During the preparation of the bank...Ch. 7 - Prob. 4TIF Ch. 7 - Prob. 5TIF

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Similar questions

Using the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance: $5,577 Deposits in transit: $1,546 Outstanding checks: $956 Interest income: $56 NSF check: $456
Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.

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