FINANCIAL & MANAG ACCT (CH. 1 - 24 EBOOK
9th Edition
ISBN: 9781264511068
Author: Wild
Publisher: MCG
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Chapter 6, Problem 5PSB
1.
To determine
Concept Introduction:
The bank reconciliation statement for May 31.
2.
To determine
Concept Introduction: Bank reconciliation statement is prepared to reconcile the account balance with the bank statement because the account balance and the balance in the bank are rarely equal, mainly due to timing differences.
The
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prepare journal entries for this
The following errors were found when the controller at Crane Hotel was doing the March 31 bank reconciliation.
1.
2.
3.
On March 5, Crane recorded a payment of an account payable as $2,710. The correct amount was $1,270. It was correctly
recorded by the bank.
On March 19, Crane recorded a deposit as $2,820. The correct amount was $4,280. The deposit was for the collection of an
account receivable and the bank recorded it correctly.
On March 31, the bank recorded a deposit as $5,610. The correct amount was $2,650. This error was corrected by the bank
on April 1. Crane had correctly recorded the deposit.
For each of these errors indicate if and how it would be shown on the bank reconciliation.
1.
2.
3.
$
$
+A
Question: The following errors were found when the controller at Mountain Motel was doing the June 30 bank reconciliation.
On June 25, the bank posted a cheque in the amount of $825 to Mountain’s bank account. The cheque had been written by another company, Mountainside Company.
For each of these errors, (a) indicate if and how it would be shown on the bank reconciliation, and (b) prepare the journal entry for Mountain if required.
Please explain for the answer.
In comparing the canceled checks on the bank statement with the entries in the accounting records, Tanner Company found that check number 4239 for May's rent was correctly written and drawn for $6,750 but was erroneously entered in the accounting records as $6,570. When preparing the May bank reconciliation, the Tanner Company should: Select one: A. Add $180 to the book balance of cash B. Deduct $180 from the bank statement balance C. Add $180 to the bank statement balance D. Deduct $180 from the book balance of cash
Chapter 6 Solutions
FINANCIAL & MANAG ACCT (CH. 1 - 24 EBOOK
Ch. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QS
Ch. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14QSCh. 6 - Prob. 15QSCh. 6 - Prob. 16QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Prob. 5PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 5PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1GLPCh. 6 - Prob. 1.1AACh. 6 - Prob. 1.2AACh. 6 - Prob. 1.3AACh. 6 - Prob. 1.4AACh. 6 - Prob. 1.5AACh. 6 - Prob. 2.1AACh. 6 - Prob. 2.2AACh. 6 - Prob. 3.1AACh. 6 - Prob. 3.2AACh. 6 - Prob. 3.3AACh. 6 - Prob. 3.4AACh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Harriet Knox, Ralph Patton, and Marcia Diamond...Ch. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTN
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Similar questions
- The 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_forwardA table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through 12, indicate whether the item should be added to or subtracted from the book or bank balance, and whether it should or should not appear on the reconciliation. (Select the answers in the appropriate cells. Leave no cells blank. Be certain to select "NA" in fields which are not applicable.) Item 1. Checks written by another depositor but mistakenly charged against this company's account. 2. Bank service charge for September is not yet recorded by the company. 3. Checks outstanding on August 31 that cleared the bank in September. 4. NSF check from a customer is shown on the bank statement but not yet recorded by the company. 5. Interest earned on the September cash balance in the bank is not yet recorded by the company. 6. Deposit made on September 5 and processed by the bank on September 6. 7. A note receivable is collected by the bank for the company, but it is not yet recorded by the…arrow_forwardThe following errors were found when the controller at Crane Hotel was doing the March 31 bank reconciliation. 1. 2. 3. On March 5, Crane recorded a payment of an account payable as $2,710. The correct amount was $1,270. It was correctly recorded by the bank. On March 19, Crane recorded a deposit as $2,820. The correct amount was $4,280. The deposit was for the collection of an account receivable and the bank recorded it correctly. On March 31, the bank recorded a deposit as $5,610. The correct amount was $2,650. This error was corrected by the bank on April 1. Crane had correctly recorded the deposit. For each of these errors indicate if and how it would be shown on the bank reconciliation. 1. 2. 3. $ $ $arrow_forward
- The bank reconciliation shows the following adjustments: Outstanding checks: $987 Error by bank recorded customer check twice: $436 Notes receivable collected by bank: $2,500; interest: $145 Deposits in transit: $1,698 Bank charges: $70 PLEASE NOTE: For similar accounting treatment (DR or CR), you are to record accounts in the order in which they are mentioned in the adjustments. Using the following accounts: Bank Errors Bank Service Charges Cash Deposits in Transit Interest Expense Interest Income Notes Receivable Outstanding Checks prepare the two correcting journal entries: DR CR and DR CR CR PLEASE NOTE: You must enter the account names exactly as written above and all dollar amounts will be with "$" and commas as needed (i.e. $12,345).arrow_forwardBank Reconciliation Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconcillation as of May 31 and has found the following possible reconciling items between its book balance and its cash balance per the bank: Garrison's book balance Outstanding checks Customer's NSF check returned by the bank Interest earned on checking account In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer's check: the amount was recorded in cash receipts as $350; the bank recorded the amount correctly as $530. Required: What amount will Garrison report as its adjusted cash balance at May 31? $15,870 960 190 120arrow_forward
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