Pfin (book Only)
6th Edition
ISBN: 9781337117029
Author: Billingsley, Randy; Joehnk, Michael D.; Gitman, Lawrence J.
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 4FPE
a.
Summary Introduction
To discuss: The money an individual may lose if reported the day it was stolen.
A checking account is an assortment of deposit accounts held by a bank or credit association that enables a customer to deposit as well as withdraw funds on a typical premise.
b.
Summary Introduction
To discuss: The money an individual may lose if reported 6 days after the theft.
c.
Summary Introduction
To discuss: The money an individual may lose if reported 65 days after receiving the periodic statement.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose that someone stole your ATM card and withdrew $1,000 from your checking account. How much money could you lose (according to federal legislation) if you reported the stolen card to the bank:
The current month's bank statement for your account arrives in the mail. In reviewing the statement, you notice a deposit listed for $400 that you did not make. It has been credited in error to your account. Discuss with your fellow classmates whether you have an ethical or legal obligation to inform the bank of the error. What action should you take?
"The current month's bank statement for your account arrives in the mail. In reviewing the statement, you notice a deposit listed for $400 that you did not make. It has been credited in error to your account.
Discuss whether you have an ethical or legal obligation to inform the bank of the error. What action should you take?"
Thoroughly discuss the pros and cons of what the results would be if you reported it versus not reporting it. Be sure to tell what option you would choose and explain why."
Chapter 4 Solutions
Pfin (book Only)
Ch. 4 - Prob. 1LOCh. 4 - Describe todays financial services marketplace,...Ch. 4 - Prob. 3LOCh. 4 - Prob. 4LOCh. 4 - Prob. 5LOCh. 4 - Develop a cash management strategy that...Ch. 4 - Adapting to a low-interest-rate environment. A...Ch. 4 - Prob. 2FPECh. 4 - Choosing a new bank. Youre getting married and...Ch. 4 - Prob. 4FPE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- The bank mistakenly withdraws a check amounting $75,000 on thecompany’s account. What is the journal entry to correct the bank record?arrow_forwardExposure from stolen ATM card. Suppose someone stole $1,000 dollars from your checking account. How much money could you lose if you reported the card to the bank the day it was stolen, 6 days later, and after you receive your periodic statement?arrow_forwardHelen was a very forgetful person, so she had placed her bank code (PIN number) on the back of her debit card. A thief stole Helen’s card and was able to take $100 from an ATM on the day of the theft. That same day, Helen realized that the card was gone and phoned her bank. The following morning, the thief withdrew another $100. For how much, if anything, is Helen responsible? Why?arrow_forward
- Identity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,245. The bank statement shows a balance of $207. Notes collected were $100 and $210. The bank charged a $25 service fee. Outstanding checks were Number 255, $985; Number 261, $233; and Number 262, $105. There is a deposit in transit of $2,646. Prepare your bank reconciliation.arrow_forwardIdentity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,425. The bank statement shows a balance of $363. Notes collected were $220 and $330. The bank charged a $85 service fee. Outstanding checks were No. 255, $1,165; No. 261, $437; and No. 262, $705. There is a deposit in transit of $3,834. Prepare your bank reconciliation. Checkbook balance Add: Notes collected Subtotal Deduct: Service fee Reconciled balance $ $ GA BANK RECONCILIATION 1,440 570 2,010.00 90 $ $ $ 376 3,933 4,309 1,920arrow_forward6. Austin's bank has a $45 overdraft fee. On Friday morning Austin had $345.78 in his checking account. Friday night a payment to AT&T was automatically withdrawn from his account in the amount of $210.15. Over the weekend Austin withdrew $100 cash and made purchases with his debit card in the amounts of $65.34, $24.99, $6.75 and $42.87. What was Austin's balance on Monday morning? ASUSarrow_forward
- Identity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlena's grandmother is concerned her identity has been stolen. Help Marlena reconcile her grandmother's checkbook and bank statement. The checkbook reflects a balance of $1,440. The bank statement shows a balance of $376. Notes collected were $230 and $340. The bank charged a $90 service fee. Outstanding checks were Number 255, $1,180; Number 261, $454; and Number 262, $755. There is a deposit in transit of $3,933. Prepare your bank reconciliation. Checkbook balance Add: Subtotal Deduct Reconciled balance BANK RECONCILIATION Bank balance Add: Subtotal Deduct: Reconciled balancearrow_forwardTo prevent embezzlement, what can you do to protect your operation against it? a) Make bank deposits daily. b) Ensure that the individual that makes daily deposits is bonded. c) Review and approve bank statement reconciliations each month. d) All of the above e) Only a. and b. abovearrow_forwardThe bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?arrow_forward
- True or False. 5. Deposits in transit refer to collections received on the last day of the month which are deposited the first working day of the following month.6. Deposit in transit is a reconciling item which requires an adjusting entry in the books of the depositor.7. Bank service charge is an example of an unrecorded bank credit.8. Bank reconciliation is prepared once a year at the end of the accounting period.9. An NSF check is a reconciling item that does not require an adjusting entry in the books of the depositor.10. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.11. A bank statement is prepared by the depositor to reconcile the difference between his records and bank records.12. A bank statement is a letter issued by the bank that certifies the existence of the bank account.13. Deposit in transit is a reconciling item added to the unadjusted book balance.14. Outstanding check is a reconciling item deducted…arrow_forwardUsing the following information, calculate the adjusted bank balance. • 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 $153. 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.arrow_forward1. A local bank reported that it lost $150,000 as the result of employee fraud. Ray Fairburn is not clear on what is meant by "employee fraud." Explain the meaning of fraud to Ray and give an example of fraud that might occur at a bank.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College