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Knowledge Check 01 Match the term and the definition. DEFINITION 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company's book balance from its accounting records. 8. Subtract bank fees from the book balance. TERM Step 1 Step 2 Step 3 Step 4 S

Knowledge Check 01 Match the term and the definition. DEFINITION 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company's book balance from its accounting records. 8. Subtract bank fees from the book balance. TERM Step 1 Step 2 Step 3 Step 4 S

Financial Accounting: The Impact on Decision Makers
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 6.3E
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8 Ay Required information A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. Steps in Preparing Bank Reconciliation: 1. Enter bank balance taken from the bank statement. 2. Add unrecorded deposits and bank errors understating the bank balance. 3. Subtract any outstanding checks and bank errors overstating the bank balance from the bank balance. 4. Compute the adjusted bank balance. 5. Enter cash account book balance taken from the accounting records. 6. Add any unrecorded cash receipts and errors understating the book balance to the book balance. 7. Subtract any unrecorded bank fees, NSF checks, and errors overstating the book balance and deduct them from the book balance. Knowledge Check 01 D Match the term and the definition
Transcribed Image Text:8 Ay Required information A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. Steps in Preparing Bank Reconciliation: 1. Enter bank balance taken from the bank statement. 2. Add unrecorded deposits and bank errors understating the bank balance. 3. Subtract any outstanding checks and bank errors overstating the bank balance from the bank balance. 4. Compute the adjusted bank balance. 5. Enter cash account book balance taken from the accounting records. 6. Add any unrecorded cash receipts and errors understating the book balance to the book balance. 7. Subtract any unrecorded bank fees, NSF checks, and errors overstating the book balance and deduct them from the book balance. Knowledge Check 01 D Match the term and the definition
8 Ay Required information A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. Steps in Preparing Bank Reconciliation: 1. Enter bank balance taken from the bank statement. 2. Add unrecorded deposits and bank errors understating the bank balance. 3. Subtract any outstanding checks and bank errors overstating the bank balance from the bank balance. 4. Compute the adjusted bank balance. 5. Enter cash account book balance taken from the accounting records. 6. Add any unrecorded cash receipts and errors understating the book balance to the book balance. 7. Subtract any unrecorded bank fees, NSF checks, and errors overstating the book balance and deduct them from the book balance. Knowledge Check 01 D Match the term and the definition
Transcribed Image Text:8 Ay Required information A bank reconciliation proves the accuracy of the depositor's and the bank's records. The bank statement balance is adjusted for items such as outstanding checks and unrecorded deposits made on or before the bank statement date but not reflected on the statement. The book balance is adjusted for items such as service charges, bank collections for the depositor, and interest earned on the account. Steps in Preparing Bank Reconciliation: 1. Enter bank balance taken from the bank statement. 2. Add unrecorded deposits and bank errors understating the bank balance. 3. Subtract any outstanding checks and bank errors overstating the bank balance from the bank balance. 4. Compute the adjusted bank balance. 5. Enter cash account book balance taken from the accounting records. 6. Add any unrecorded cash receipts and errors understating the book balance to the book balance. 7. Subtract any unrecorded bank fees, NSF checks, and errors overstating the book balance and deduct them from the book balance. Knowledge Check 01 D Match the term and the definition
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