1. Explanation Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. Prepare journal entry that makes the Bakery P’s books as of June to be correct. Date Account Titles and explanation Debit ($) Credit ($) June 30 Person S, Drawing 200 Cash 200 (To record the unrecorded ATM withdrawal) (Table 1) Person S, drawings is a component of stockholder’s equity and there is a decrease in the value of stockholders equity. Hence, debit the Person S, drawings by $200. Cash is an asset and there is a decrease in the value of an asset. Hence, credit the cash by $200. Date Account Titles and explanation Debit ($) Credit ($) June 30 No entry for deposit in transit (Table 2) Date Account Titles and explanation Debit ($) Credit ($) June 30 Cash 90 Accounts payable 90 (To record the error in recording check) (Table 3) Cash is an asset and there is an increase in the value of an asset... 2. To determine Prepare necessary journal entry that makes the Bank L’s books as of June to be correct.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN: 9781305666160

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

See similar textbooks

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Chapter 7, Problem 1CP

To determine

Prepare necessary journal entry that makes the Bakery P’s books as of June to be correct.

To determine

Prepare necessary journal entry that makes the Bank L’s books as of June to be correct.

Expert Solution & Answer

Chapter 7 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Ch. 7 - Prob. 1TF Ch. 7 - Prob. 2TF Ch. 7 - Prob. 3TF Ch. 7 - Prob. 4TF Ch. 7 - Prob. 5TF Ch. 7 - Prob. 1MC Ch. 7 - Prob. 2MC Ch. 7 - Prob. 3MC Ch. 7 - Prob. 4MC Ch. 7 - When the cash short and over account has a debit...

Ch. 7 - Match the following words with their definitions...Ch. 7 - Prob. 2CE Ch. 7 - Prob. 3CE Ch. 7 - Prob. 4CE Ch. 7 - Why must a signature card be filled out and signed...Ch. 7 - Prob. 2RQ Ch. 7 - Prob. 3RQ Ch. 7 - Prob. 4RQ Ch. 7 - What are the most common reasons for differences...Ch. 7 - Prob. 6RQ Ch. 7 - Prob. 7RQ Ch. 7 - Name five common uses of electronic funds...Ch. 7 - Prob. 9RQ Ch. 7 - What should be prepared every time a petty cash...Ch. 7 - At what two times should the petty cash fund be...Ch. 7 - Prob. 12RQ Ch. 7 - At what two times would an entry be made affecting...Ch. 7 - What does a debit balance in the cash short and...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - Prob. 2SEA Ch. 7 - Prob. 3SEA Ch. 7 - Prob. 4SEA Ch. 7 - Prob. 5SEA Ch. 7 - Prob. 6SEA Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - Prob. 8SPA Ch. 7 - Prob. 9SPA Ch. 7 - Prob. 10SPA Ch. 7 - Prob. 11SPA Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - Prob. 2SEB Ch. 7 - Prob. 3SEB Ch. 7 - Prob. 4SEB Ch. 7 - Prob. 5SEB Ch. 7 - Prob. 6SEB Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - Prob. 8SPB Ch. 7 - Prob. 9SPB Ch. 7 - Prob. 10SPB Ch. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - Prob. 1MYW Ch. 7 - Prob. 1MP Ch. 7 - Prob. 1CP

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The vice president of finance asks the accounts payable (AP) clerk to write a check in the name of the president for $10,000. He and the president will sign the check (two signatures needed on a check of this size). He further instructs the AP clerk not to disclose this check to her immediate supervisor. What should the AP clerk do? Should she prepare the check? Should she inform her immediate supervisor? Discuss with internal controls in mind.

Recommended textbooks for you

College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Century 21 Accounting General Journal
Accounting
ISBN:9781337680059
Author:Gilbertson
Publisher:Cengage
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning