BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
84 views

Problem #6016; Bank Reconciliation OBJECTIVE

The cash account of Dixon Products reveals the following information:

Balance 480 H.300

Deposits during May 31600 4L620 Chocks written during May SHOW ME H01!

The bank statement for May contains the following information:

Bank balance, 450 $ 11.75!)

Add: Deposits during May 37.250

55 49.000

Less: Checks paid during May $140,230]

NSF check from Fmiin Inc. (190]

Bank service charges (40] [40460)

Bank balance, SBI $ 8,540

(Continued)

A mmpafison of detailed company records with the bank statement indicates the following Mommfion:

Al 4.50 At 531

Deposit in transit $800 Shift

Outstanding chocks T50 2‘E40

The bank amounts are determined to be correct.

Required:

1. Prepare a bank reconciliation for May.

2. Prepare the adjusting entries made by Dixon as a result of the reconciliation process.

3. What amount is reported for cash on the balance sheet at May 31?

To determine

Concept Introduction:

Bank Reconciliation:

Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side.

Requirement-1:

To Prepare:

The Bank reconciliation Statement.

Explanation

The Bank reconciliation Statement is explained as follows:

    Dixon Products
    Bank Reconciliation
    As of July 31
    Bank SideBook Side
    Balance as per Bank statement $ 8,540 Balance as per Cash Book (11800+37600-41620) $ 7,780
    Add: Add:
    Deposit in transit
To determine

Concept Introduction:

Bank Reconciliation:

Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side.

Requirement-2:

To Prepare:

The necessary adjusting entries.

To determine

Concept Introduction:

Bank Reconciliation:

Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side.

Requirement-3:

To Indicate:

The amount of cash to be reported on balance sheet.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

List the four components of expenditure. Which is the largest?

Principles of Macroeconomics (MindTap Course List)

What are the three goals of green computing?

Fundamentals of Information Systems

What is the circumference of the circle in the previous question?

Precision Machining Technology (MindTap Course List)

Rotational kinetic energy is yet another mass-dependent engineering quantity. An object having a mass moment of...

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

How would you explode DFDs?

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

An upward compatible application means it can recognize and work with applications written for an earlier versi...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)