Ch7_Day 2

Ch7_Day 2 - Chapter 7 Day 2 ACCT 252 Spring 2008 Mills 11 4...

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Chapter 7 Day 2 ACCT 252 Spring 2008 Mills
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RECONCILING THE BANK  ACCOUNT Reconciliation is necessary as the balance per bank and balance per books are seldom in agreement due to time lags and errors A bank reconciliation has no other responsibilities pertaining to cash 11 4
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Steps in preparing a bank reconciliation: Determine deposits in transit Determine outstanding checks Note any errors discovered Trace bank memoranda to the records Each reconciling item used in determining the “Adjusted cash balance per books” should be recorded by the depositor with an adjusting entry RECONCILING THE  BANK ACCOUNT
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BANK RECONCILIATION
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Balance of bank account at month's end $XX Balance of cash account in ledger at month's end $XX Add: Add: Deposit in transit XX Additions to bank account not recorded on the books XX Bank errors XX Book errors XX Less: Less: Outstanding checks (XX) Deductions to bank account not recorded on the books (XX) Bank errors (XX) Book errors (XX) Adjusted bank balance $XX Adjusted book balance $XX BANK RECONCILIATION BANK BOOKS You have  recorded  these  deposits,  but the bank  has not yet  received  them You have  recorded 
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This note was uploaded on 04/05/2008 for the course ACCT 252 taught by Professor Mills during the Spring '08 term at NMSU.

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Ch7_Day 2 - Chapter 7 Day 2 ACCT 252 Spring 2008 Mills 11 4...

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