Answered: Entries for Bank Reconciliation The…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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Entries for Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:

Cash balance according to the company's records at August 31, $38,928.
Cash balance according to the bank statement at August 31, $37,960.
Checks outstanding, $15,080.
Deposit in transit, not recorded by bank, $16,120.
A check for $312 issued in payment of an account to a supplier was erroneously recorded by Wolfpack Bread Inc. as $123.
Bank debit memo for service charges, $162.

Record the effects on the accounts and financial statements of the company based upon the information above. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Increase in Cash

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Cash	+	No effect	=	Accounts Payable	+	No effect
Aug. 31.	fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
	Statement of Cash Flows		Income Statement
	Operating	fill in the blank 10		No effect	fill in the blank 12

Decrease in Cash

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Cash	+	No effect	=	No effect	+	Retained Earnings
Aug. 31.	fill in the blank 17		fill in the blank 18		fill in the blank 19		fill in the blank 20
	Statement of Cash Flows		Income Statement
	Operating	fill in the blank 22		Miscellaneous expense	fill in the blank 24

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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