(a) Explanation Prepare bank reconciliation of Company CD as at August 31, 20Y6, as shown below: Company CD Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement, August 31, 20Y6 $56,300 Add: Deposit in transit 13,325 69,625 Less: Outstanding checks (25,390) Adjusted cash balance $44,235 Cash balance according to company records, August 31, 20Y6 $42,920 Add: Error in recording check as $1,500 instead of $150 1,350 44,270 Less: Bank service charge (35) Adjusted cash balance $44,235 Table (1) Working Notes : Calculate book error amount... (b) To determine The amount of cash to be reported on the balance sheet of Company CD (c) To determine To explain: Whether bank reconciliation should always balance

15th Edition

ISBN: 9781337398169

Author: Carl Warren, Jeff Jones

Publisher: Cengage Learning

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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 7.18EX

(a)

To determine

Bank reconciliation statement: Bank statement is prepared by bank. The company maintains its own bank related records. Thus, cash balance per bank and cash balance per books seldom agree. Hence, bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

To prepare: Bank reconciliation statement of Company CD as at August 31, 20Y6

(b)

To determine

The amount of cash to be reported on the balance sheet of Company CD

(c)

To determine

To explain: Whether bank reconciliation should always balance

Expert Solution & Answer

Chapter 7 Solutions

Corporate Financial Accounting

Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - Prob. 3DQ Ch. 7 - Why should the responsibility for maintaining the...Ch. 7 - Assume that Brooke Miles, accounts payable clerk...Ch. 7 - Prob. 6DQ Ch. 7 - Prob. 7DQ Ch. 7 - Prob. 8DQ Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

Ch. 7 - Prob. 7.1BE Ch. 7 - Prob. 7.2BE Ch. 7 - Prob. 7.3BE Ch. 7 - Prob. 7.4BE Ch. 7 - Days cash on hand Financial statement data for...Ch. 7 - Prob. 7.1EX Ch. 7 - Prob. 7.2EX Ch. 7 - Prob. 7.3EX Ch. 7 - Prob. 7.4EX Ch. 7 - Prob. 7.5EX Ch. 7 - Prob. 7.6EX Ch. 7 - Prob. 7.7EX Ch. 7 - Prob. 7.8EX Ch. 7 - Prob. 7.9EX Ch. 7 - Prob. 7.10EX Ch. 7 - Prob. 7.11EX Ch. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Internal control of cash payments Abbe Co. is a...Ch. 7 - Prob. 7.15EX Ch. 7 - Prob. 7.16EX Ch. 7 - Prob. 7.17EX Ch. 7 - Prob. 7.18EX Ch. 7 - Prob. 7.19EX Ch. 7 - Prob. 7.20EX Ch. 7 - Prob. 7.21EX Ch. 7 - Prob. 7.22EX Ch. 7 - Prob. 7.23EX Ch. 7 - Prob. 7.24EX Ch. 7 - Prob. 7.1APR Ch. 7 - Prob. 7.2APR Ch. 7 - Prob. 7.3APR Ch. 7 - Prob. 7.4APR Ch. 7 - Prob. 7.5APR Ch. 7 - Prob. 7.1BPR Ch. 7 - Prob. 7.2BPR Ch. 7 - Prob. 7.3BPR Ch. 7 - Prob. 7.4BPR Ch. 7 - Prob. 7.5BPR Ch. 7 - Analyze and compare Amazon.com to Netflix...Ch. 7 - Analyze and compare J. C. Penney and Macys J. C....Ch. 7 - Prob. 7.3MAD Ch. 7 - Prob. 7.4MAD Ch. 7 - Prob. 7.5MAD Ch. 7 - Ethics in Action Tehra Dactyl is an accountant for...Ch. 7 - Bank error During the preparation of the bank...Ch. 7 - Prob. 7.4TIF Ch. 7 - Prob. 7.5TIF

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The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.
The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.

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