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
Requirement-1To Prepare:
The bank reconciliation statement
Answer to Problem 5.23E
The bank reconciliation statement is as follows:
Bank Reconciliation Statement | |||||
As of August. 30 20Y9 | |||||
Bank Side | Book Side | ||||
Balance as per Bank statement | 17325 | Balance as per | 6,800 | ||
Add: | Add: | ||||
Deposit in transit | 2,175 | Note collected | 7,500 | ||
Interest on note | 600 | ||||
Check Error | 450 | 8,550 | |||
Less: | Less: | ||||
Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
Reconciled Balance | 15,310 | Reconciled Balance | 15,310 |
Explanation of Solution
The bank reconciliation statement is prepared as follows:
Bank Reconciliation Statement | |||||
As of August. 30 20Y9 | |||||
Bank Side | Book Side | ||||
Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
Add: | Add: | ||||
Deposit in transit | 2,175 | Note collected | 7,500 | ||
Interest on note | 600 | ||||
Check Error | 450 | 8,550 | |||
Less: | Less: | ||||
Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
Reconciled Balance | 15,310 | Reconciled Balance | 15,310 |
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 Indicate:
The cash balance to be reported in the balance sheet
Answer to Problem 5.23E
The cash balance to be reported in the balance sheet is $15,310
Explanation of Solution
The bank reconciliation statement is prepared as follows:
Bank Reconciliation Statement | |||||
As of August. 30 20Y9 | |||||
Bank Side | Book Side | ||||
Balance as per Bank statement | 17325 | Balance as per Cash Book | 6,800 | ||
Add: | Add: | ||||
Deposit in transit | 2,175 | Note collected | 7,500 | ||
Interest on note | 600 | ||||
Check Error | 450 | 8,550 | |||
Less: | Less: | ||||
Outstanding Checks | (4,190) | Bank Service Charges | (40) | ||
Reconciled Balance | 15,310 | Reconciled Balance | 15,310 |
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