Financial & Managerial Accounting
Solutions
Financial & Managerial Accounting
Bank reconciliation
Identify the errors in the following bank reconciliation;
| Poway Co Bank Reconciliation For the Month Ended June 30, 2016 | |||
| Cash balance according to bank statement | $16,185 | ||
| Add outstanding checks: | |||
| No 1067 | $ 575 | ||
| 1106 | 470 | ||
| 1110 | 1,050 | ||
| 1113 | 910 | 3,005 | |
| $19,190 | |||
| Deduct deposit of June 30 not recorded by bank | 6,600 | ||
| Adjusted balance | $12,590 | ||
| Cash balance according to company's records | $ 8,985 | ||
| Add: Proceeds of note collected by bank: Principal | $6,000 | ||
| Interest | 300 | $6,300 | |
| Service charges | 15 | 6,315 | |
| $15,300 | |||
| Deduct: Check returned because of insufficient funds | $ 890 | ||
| Error in recording June 17 deposit of $7,1 50 as $1,750 | $,400 | 6,290 | |
| Adjusted balance | $ 9,010 | ||
a.
Bank Reconciliation Statement: 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.
To identify: The errors in the bank reconciliation.
- 1. The heading should be entered as “June 30, 2016” and must not be entered as “For the Month Ended June 30, 2016”.
- 2. Checks outstanding is deducted from the bank balance.
- 3. Errors in recording the deposit of $7,150 made on June 17 are �...
b.
To prepare: New bank reconciliation for P Co.
Chapter 7 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addWhich of the following is not included payroll register? a. Total hours b. Overtime earnings c. Unemployment ta...
College Accounting (Book Only): A Career Approach
A purchases journal usually is used to record all (a) purchases. (b) cash purchases. (c) purchases of merchandi...
College Accounting, Chapters 1-27
Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of 1,800,000 and related ...
Financial And Managerial Accounting
At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial reporting purpos...
Intermediate Accounting: Reporting And Analysis
Use the following information for Exercises 3-37 and 3-38: Alisha Incorporated manufactures medical stents for ...
Managerial Accounting: The Cornerstone of Business Decision-Making
Closing entries with net loss Rainbow Services Co. offers its services to individuals desiring to improve their...
Financial & Managerial Accounting
A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offe...
Financial Accounting
Determining cash payments to stockholders The board of directors declared cash dividends totaling 1,200,000 dur...
Corporate Financial Accounting
A manufacturer shipped merchandise to a retailer on a consignment basis. If the merchandise is unsold at the en...
Financial Accounting
Explain how a Trojan horse may be used to penetrate a system.
Accounting Information Systems
In a system of fractional-reserve banking, even without any action by the central bank, the money supply declin...
Principles of Macroeconomics (MindTap Course List)
A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not effi...
Brief Principles of Macroeconomics (MindTap Course List)
Direct Response: Interviewing at Marmont backgrounds. Fortunately, you were able to reschedule all three candi...
Essentials of Business Communication (MindTap Course List)
Tom Harrington loved his job as an assistant quality control officer for Rockingham Toys. After six months of u...
Management, Loose-Leaf Version
Pat and Kris arc roommates. They spend most of their time studying (of course), but they leave some time for th...
Principles of Economics (MindTap Course List)
Describe the arguments for and against society responsibility
MKTG 12:STUDENT ED.-TEXT
WACC The Paulson Companys year-end balance sheet is shown below. Its cost of common equity is 14%, its before-t...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Governments may intervene in a market economy in order to a. protect property rights. b. correct a market failu...
Essentials of Economics (MindTap Course List)
What are the major elements of the strategic IT plan?
Accounting Information Systems
ALTERNATIVE DIVIDEND POLICIES Rubenstein Bros. Clothing is expecting to pay an annual dividend per share of 0.7...
Fundamentals of Financial Management (MindTap Course List)
Identify the eight functions of marketing physical goods.
Contemporary Marketing
How does knowledge of the product life-cycle relate to the introduction of new products?
Foundations of Business (MindTap Course List)
Once again, in an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has t...
Principles of Microeconomics (MindTap Course List)
A survey conducted by Better Homes and Gardens Real Estate LLC showed that one in five U.S. homeowners have eit...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
(Whats So Perfect About Perfect Competition) Use the following data to answer the questions. Quantity Marginal ...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Describe a transaction that resulted in each of the following entries affecting the accounting equation.
College Accounting (Book Only): A Career Approach
In a payroll system, what types of input data are referred to as (a) constants and (b) variables?
Accounting (Text Only)
What is a post-audit, why do firms use them, and what problems can arise when they used?
Fundamentals of Financial Management (MindTap Course List)
Table 1.7 shows data for seven colleges and universities. The endowment (in billions of dollars) and the percen...
Statistics for Business & Economics, Revised (MindTap Course List)
EXCHANGE RATES Use the foreign exchange section of a current issue of The Watt Street Journal to look up the si...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
In retrospect, what should have been the Federal Reserves monetary policy during the 2008 financial crisis?
Exploring Economics
Bhushan Company has been using LIFO for inventory purposes because it would prefer to keep gross profits low fo...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Describe the primary and supporting activities involved in an organizations value chain. Explain the importance...
Pkg Acc Infor Systems MS VISIO CD
Angus the sheep farmer sells wool to Barnaby the knitter for 20. Barnaby makes two sweaters, each of which has ...
Principles of Macroeconomics (MindTap Course List)
For each of the following payroll-related taxes, indicate whether they generally apply to (A) employees only, (...
Corporate Financial Accounting
The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are pai...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Statement of cash flows Indicate whether each of the following cash activities would be reported on the stateme...
Survey of Accounting (Accounting I)
Why do gas stations in the middle of town typically charge a little less for gasoline than do gas stations loca...
Cornerstones of Cost Management (Cornerstones Series)
Why will government raise more tax revenue if it applies a tax to a good with inelastic demand than if it appli...
Economics (MindTap Course List)
Draw a market that is in equilibrium, and identify the area of consumers surplus and producers surplus. Now pla...
Microeconomics
The absolute prices of goods X, Y, and Z are 23, 42, and 56, respectively. What is the relative price of X in t...
Macroeconomics
Explain the theory that crowding out can weaken or nullify the effect of expansionary fiscal policy financed by...
Economics For Today
Scenario 2 Lisa Jennings thought that at long last, her company, Assurance Technologies, was about to win a maj...
Purchasing and Supply Chain Management
