Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the bank reconciliation process at A. Fontes Consultancy on May 2, 20x1, the following two errors were discovered in the firm's records a. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
During the bank reconciliation process at A. Fontes Consultancy on May 2, 20x1, the following two errors were discovered in the firm's records a. The checkbook and the general journal indicated that Check 2206 dated April 17 was issued for $687 to make a cash purchase of supplies. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $28. b. The checkbook and the general journal indicated that Check 2247 dated April 20 was issued for $126 to pay a utility bill. However, examination of the canceled check and the listing on the bank statement showed that the actual amount of the check was $156. Required: 1. Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $20,255. The errors listed above are the only two items that affect the book balance. 2. Prepare general Journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17, and Check 2247 was debited to Utilities Expense on April 20. Analyze: If the errors described had not been corrected, would net income for the period be overstated or understated? By what amount? Bank Rec General Journal Analyze Prepare the adjusted book balance section of the firm's bank reconciliation statement as of April 30, 20X1. The book balance as of April 30 was $20,255. The errors listed above are the only two items that affect the book balance. A. FONTES CONSULTANCY Bank Reconciliation Statement April 30, 20X1 Balance in books Additions: $ 0 Deductions: Adjusted book balance 0 OR General Joumal > Bank Rec General Joumal Analyze Prepare general journal entries to correct the errors. Check 2206 was correctly debited to Supplies on April 17, and check 2247 was debited to Utilities Expense on April 20. View transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Empirical Studies On Economics Of Innovation Public Economics And Management

Authors: Mehmet Huseyin Bilgin, Hakan Danis, Ender Demir, Ugur Can

1st Edition

3319501631, 9783319501635

More Books

Students also viewed these Accounting questions

Question

understand what working means to workers;

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago