Chapter 4, Problem 60APSA

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.

Answer to Problem 60APSA

The Bank reconciliation Statement is as follows:

Explanation of Solution

The Bank reconciliation Statement is explained as follows:

Dixon Products
Bank Reconciliation
As of July 31
Bank Side			Book Side
Balance as per Bank statement		$ 8,540	Balance as per Cash Book (11800+37600-41620)		$ 7,780
Add:			Add:
Deposit in transit		$ 1,150
Less:			Less:
Outstanding Checks		$ 2,140	NSF Check	$ 190
			Bank Service Charges	$ 40	$230
Reconciled Balance		$ 7,550	Reconciled Balance		$ 7,550

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.

Answer to Problem 60APSA

The necessary adjusting entries are as follows:

Dixon Products
Bank Reconciliation
Journal Entries
Date	Accounts titles and Explanation	Debit	Credit
July. 31	Accounts Receivable	$ 190
	Cash		$190
July. 31	Bank Charges	$ 40
	Cash		$ 40

Explanation of Solution

The necessary adjusting entries are explained as follows:

Dixon Products
Bank Reconciliation
Journal Entries
Date	Accounts titles and Explanation	Debit	Credit
July. 31	Accounts Receivable	$ 190
	Cash		$190
	(Being adjustment made for NSF check)
July. 31	Bank Charges	$ 40
	Cash		$ 40
	(Being adjustment made for Bank Charges)

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.

Answer to Problem 60APSA

The amount of cash to be reported on balance sheet shall be $7,550

Explanation of Solution

The Bank reconciliation Statement is explained as follows:

Dixon Products
Bank Reconciliation
As of July 31
Bank Side			Book Side
Balance as per Bank statement		$ 8,540	Balance as per Cash Book (11800+37600-41620)		$ 7,780
Add:			Add:
Deposit in transit		$ 1,150
Less:			Less:
Outstanding Checks		$ 2,140	NSF Check	$ 190
			Bank Service Charges	$ 40	$230
Reconciled Balance		$ 7,550	Reconciled Balance		$ 7,550

Hence, the amount of cash to be reported on October 31 balance sheet shall be $7,550.