You may not explain it, just answer true or false! Thank you! ACTIVITY 2Instructions: Write TRUE if the statement is correct and FALSE if the statement is incorrect.1. Bank statement and bank reconciliation statement are the same.2. JOY Trading collected P 10,000 but forgotf to deposit it at the end of the month. This isoutstanding check.3. The bank deducted twice the check issued by JOY Trading. This is a book error.4. NSF check is allowed by banks.5. Interest Income increases the cash balance per book.6. JOY Trading paid a check to a supplier in the amount of P 2,000. The supplier withdrewit on the following month. This is an outstanding check that decreases the bank balancefor the month.7. Bank reconciliation statement is a technique used to detect cash fraud and irregularitiesin the company.8. One way of safeguarding cash is the separation of responsibility. A cashier is not abookkeeper. 9. The bank omits P 3,000 deposit in the bank statement of JOY Trading. This can betraceable.10. Cost of printing checks, or bank documents, charging NSF checks are bank charges.11. The book recorded twice a deposit of P 1,000, Cash per book is understated ascompared to bank balance.12. The book recorded twice a deposit of P 2,000. The book is overstated as compared tobank balance.13. The book recorded a check disbursement of P1,000 as P10,000. The book is understatedby P9,000.14. The bank omits a deposit of P 10,000 for the month. This is subtracted to the bookbalance.15. NSF checks plus charges are deducted from the book balance.

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Answered: 1. Bank statement and bank…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 7.3BE

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Hawk Enterprises identified the following items on its January,r reconciliaLion that may require adjusting entries: a. A deposit of $1,190 was recorded in Hawks accounting records. but not on the January 31 bank statement. b. A check for $3.31 was outstanding at January 31. c. Included with the bank statement was a check for $560 written by Eagle Corporation. The bank had in error, deducted this check from Hawks account. d. Bank service charges were $371. e. An NSF check written by one of Hawks customers in the amount of $1,150 was returned by the bank with Hawks bank statement. This customer was paying for merchandise originally purchased on account. Required: For each of these five items, prepare an adjusting entry for Hawks jaumai1 if any is required.
Checking account reconciliation. Use Worksheet 4.1. Mateo Gonzalez has an interest-paying (NOW) checking account at the Second State Bank. His checkbook ledger lists the following checks: Mateo also made the following withdrawals and deposits at an ATM near his home: Mateos checkbook ledger shows an ending balance of 286.54. He has just received his bank statement for the month of November. It shows an ending balance of 622.44; it also shows that he earned interest for November of 3.28, had a check service charge of 8 for the month, and had another 20 charge for a returned check. His bank statement indicates the following checks have cleared: 654, 662, 672, 674, 675, 676, 677, 678, 679, and 681. ATM withdrawals on 11/1 and 11/14 and deposits on 11/2 and 11/6 have cleared; no other checks or ATM activities are listed on his statement, so anything remaining should be treated as outstanding. Use a checking account reconciliation form like the one in Worksheet 4.1 to reconcile Mateo's checking account.
Cornerstone Exercise 4-18 Adjusting Entry from Bank Reconciliation A customer of Mutare paid for merchandise originally purchased on account with a check that has been erroneously entered into Mutares cash account for $570 (it actually has been issued and paid for $750). Required: Record the appropriate journal entry to correct the error.

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