Module 4.3 - Bank Reconciliation @@ Rascal Corporation sold...

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Unformatted text preview: Bank Reconciliation @@ Rascal Corporation sold $9,000 worth ofmerchandise to Flat Farms, Inc. The terms ofthe sale allow Flat Farms to pay within 25 clays from the date ofpurohase. Prepare the journal entry Rascal Corporation would make on the date ofsale. B Close a Walk mu throuj'l a similar wovth lcome, Jesus almanza Jr Mon Jan 242011 Exercise 1 I General Journal Account Title Debit Credit Accounts Receivable H '- QIJIJIJ Select the correct accounts in the drop-down lists, and type in the amounts for each account.When done, click Check Answer. / Check Answer B Bank Reconciliation - Iceme, Jesus nimanza Jr Mon Jan 24 2011 E@ Cooper Corporation has a savings account atthe National Elankof New York. Upon receipt oftheir monthly bank statement, Cooper learnecl that cluring the month ofNovempertheir account earnecl interest of$206. The interestis not reflectecl intheircash balance per books. Prepare the required journal entryto capture the monthly-interest earnecl. a Close El Walk in! throum a similar problen/ / Exercise 2 I General Journal Account Title Debit Credit Cash H 206 Interest Revenue n 206 Select the correct accounts in the drop-down listsI and type in the amounts for each account. When doneI click Check Answer. / Check Answer B Elank Reconciliations are an important part ofthe montth closing process and also the audit process. This is the action hat must be taken to verifythatthe cash balance is correct. Also, fraud regarding cash can be discovered in this process. When we receive our bank statement aflerthe end ofthe month, he ending bank statement balance will verv liker not match our ending book balance atthe end ofthe same month. There are a few reasons forthis. Deposits thatmightbe intransit. checks hat have not cleared the bankvet, service charges and interest hat we have not recorded on our books, errors and other adjustments that mav not be handled vet. nthe whiteboard area,vou can seethe basic template for a bank reconciliation. Notice thatthe adjusted balances should e equal for each section. That is when we knowvve are reconciled. Continue Walk me through a similar problem At reconciliation Balance per Bank = Balance per Books Calculating Adjusted Balance per Bank Balance per bank Deposits in transit Outstanding checks Errors by bank Adjusted balance per bank Calculating Adjusted Balance per Books Balance per books Interest earned Notes collected by bank Bank service charges NSF checks Errors on books Adjusted balance per books Welcome. Jesus Almanza Jr .7 B. Bank Reconciliation Adjustments Tue Jan 25 2o11 E? a Exel cise 'I Parker Corp. has the following information: Balance perbank $11,?UU Balance per books $8,?8? Monthly interestearnecl $38 NSF check $425 Afler examination oftheir cash disbursementsjournal and cash RECDnCHEU 933“ balance 2 $ E400 receipts journal, Parker Corp. determinedthese items have not yet clearedthe bank: Outstanding checks $3,900 Deposits intransit $500 ii I Bank Reconciliation Ell .xls Whatisthe reconciled cash balance forthe bank and books? Close I I Walk me through a lsimilar problem Check Answer Welcome, Jesus Almanza Jr .7 B. Bank Reconciliation Adjustments Tue Jan 25 2011 i @ Exel cise 2 Joyner Company has the following information: Balance per books $21,142 Outstanding checks $124? Safe deposit box fee $40 Balance per bank $29,315 Deposits intransit $250 _ Reconciled cash balance = $ 3819 .§ Elank Reconciliation EI2.)(Is The bank also recorded $11 Tforthe collection ofa note and interest on behalf ofJoyner Company. What l5 the reconciled cash balance forthe bank and books? Type a number into the box, then click Check Answer. W Close I Walk rm: throuah a similar problem Check Answer lit-1 Bank Reconciliation Icome, Jesus almanza Jr Tue Jan 25 2011 la ; Exercise1 I The staff accountant ofAlysa Corporation justfinished their monthly bankreconciliation. Now she needsto preparejournal entriesto make the books ecjualthe correct adjusted cash balance. Prepare the required journal entry forthe NSF check. General Journal Account Title Debit Credit Balance perpank $18.90? Add: Deposits intransit $1,600 Less: Outstanding checks $3,100 Accounts Receivable i 525 Adjusted balance perpank $1 TAD? n Balance perpooks $1T,944 Add: Monthlyinterestearned $88 Less: NSF check $525 Adjusted balance per hooks $1?,4DT Select the correct accounts in the drop-down lists, and type in the amounts for each accountmlhen done, click Check Answer. a Close El Walk Ml throud'l a similar may / Check Answer @ Bank Reconciliation - Icome, Jesus almanza Jr Tue Jan 25 2011 3% make the books equal the correct adjusted cash balance. Prepare the required journal entrvforthe collection ofthe note. Balance per bank $11,323 Add: Depositsintransit $850 Less: Outstanding checks $2,000 Adjusted balance per bank $10,113 Balance per books $9,558 Add: Collection ofnote $515 Adjusted balance per books $10.1?3 The note collected contained $15 ofinterest revenue and the remainderwas principal. General Journal Account Title Cash H Notes Receivable 2 Interest Revenue 2 Add Credit a Close El Walk mu throuj'l a similar wovth Exercise 2 I Check Answer B ...
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This note was uploaded on 04/03/2011 for the course FIN 504 taught by Professor Joe during the Spring '10 term at Keller Graduate School of Management.

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Module 4.3 - Bank Reconciliation @@ Rascal Corporation sold...

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