Accounting Homework Week 3
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hw20ch20620b-06.0420jes20for20bank20rec.xlsProblem
| Daniel Scott is an audit manager with the accounting firm of Nelson & Riley, CPAs. As part of the routine audit procedures for one of the firm's clients, Daniel instructed Wanda Mullins, a newly hired staff auditor, to obtain a bank statement directly from the client's bank and prepare an independent reconciliation of the Cash account. Wanda did a great job and presented Daniel with the following reconciliation. Daniel has now forwarded this document directly to you, with a request that you prepare proposed adjusting entries that need to be recorded by the client. | ||||
| Ending balance per bank statement | $ 67,700.98 | |||
| Add: Deposits in transit | 13,444.12 | |||
| Deduct: Outstanding checks | ||||
| #12221 | $ 16,887.34 | |||
| #12327 | 8,550.50 | |||
| #12329 | 132.74 | (25,570.58) | ||
| Correct cash balance | $ 55,574.52 | |||
| Ending balance per company records | $ 52,148.55 | |||
| Add: | ||||
| Payment from customer via ETF* | $ 3,445.99 | |||
| Interest earnings | 566.88 | 4,012.87 | ||
| Deduct: | ||||
| Reject customer credit card/charge back | 466.90 | |||
| Service charges | 120.00 | (586.90) | ||
| Correct cash balance | $ 55,574.52 | |||
| * | This payment has yet to be recorded as revenue by the company. |
&R&"Myriad Web Pro,Bold"&20B-06.04
B-06.04
Worksheet
| GENERAL JOURNAL | |||||
| Date | Accounts | Debit | Credit | ||
| To record adjustments necessitated by bank reconciliation |
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web Pro,Bold"&20B-06.04
B-06.04
