ACC 225 WEEK 8 ASSIGNMENT - INTERNAL CONTROL AND BANK RECONCILIATIONS part 2

ACC 225 WEEK 8 ASSIGNMENT - INTERNAL CONTROL AND BANK RECONCILIATIONS part 2

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Student Name: Class: Problem 08-04A CLARK COMPANY Bank Reconciliation July 31, 2005 Bank statement balance $28,020.00 Add: Deposit of July 31 10,152.00 Total $38,172.00 Deduct: Outstanding Checks: 3031 $1,380.00 3065 336.00 3069 2,148.00 3,864.00 Adjusted bank balance $34,308.00 «- Correct! . Book balance $26,193.00 Add: Proceeds of note less collection charge $8,955.00 $35,148.00 Deduct: NSF check $805.00 Service charge 15.00 Error (Check no. 3056) 20.00 $840.00 Adjusted book balance $34,308.00 «- Correct! CLARK COMPANY General Journal Date Account Title Debit Credit Jul 31 Cash 8,955 Collection Expense 45 Notes Receivable 9,000 «- Correct! 31 Accts. Rec.-J. Shaw 805 Cash 805 «- Correct! 31 Miscellaneous Expenses 15
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Unformatted text preview: Cash 15 - Correct! 31 Rent Expense 20 Cash 20 - Correct! For each of the following errors, explain the effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance. a. Unadjusted cash balance of $26,193 is listed on reconciliation as $26,139. b. Collection of $9,000 note less $45 collection fee is added to bank statement cash balance on reconciliation. a) No effect the on adjusted bank statement cash balance; $54 understatement on the adjusted cash account book balance b) $8,955 overstatement on the adjusted bank statement cash balance; $8,955 undertatement on the adjusted cash account book balance....
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