Entries for Bank ReconciliationThe following data were accumulated for use in reconciling the bank account of Kaycee Sisters 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 in payment of an account was erroneously recorded Kaycee Sisters 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. Record the increase in cash. Record the decrease in cash.

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 Kaycee Sisters 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 in payment of an account was erroneously recorded Kaycee Sisters 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.

Record the increase in cash.

Record the decrease in cash.

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Cash difference due to entry 5 = Actual payment - Wrong amount recorded

The question requires to record the effect on the accounts and financial statements.

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