Textbook Problem

Computing the Bank Statement Balance (Appendix 6.1) Your cashier has notified you that he has misplaced all the bank statements for the past year. You review selected accounting records during the year and discover that the following journal entry was made to reconcile the June 30, 2019, bank statement and the accounting records:

Required:

Next Level What events might have caused each of the preceding reconciling items to occur?

Next Level Compute the amount that would have appeared as the balance per bank statement on a bank reconciliation if the preadjustment cash balance in the accounting records was $7,683.70, outstanding checks were $207.50, and no other adjustments were required.

Next Level Assume that you contact the bank and are informed that a balance of $5,542.90 had been reported on the June 30 bank statement. What does this discrepancy indicate, and how would you begin investigating it?