Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part of your duties as the company's Chief Internal Control Officer (CICO) is to prepare a bank reconciliation each month to ensure proper accounting and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Part of your duties as the company's Chief Internal Control Officer (CICO) is to prepare a bank reconciliation each month to ensure proper accounting and safeguarding of cash. The bank reconciliation involves you comparing information in the bank statement to information in the company's cash records. At the beginning of the month, both the bank and the company had a beginning cash balance of $23,470. By the end of the month, the bank statement shows a month-end cash balance of $20,680, while the company's records indicate a month-end cash balance of $24,820. The left circle encompasses all cash transactions for the month reflected in the bank's balance of cash. The right circle encompasses all cash transactions for the month reflected in the company's current balance of cash. $1,000 NOTE $5,860 Sales $7,720 Sales Bank's records: Deposits and credits Company's records: Cash receipts $50 INT $6,240 Sales $700 NSE $3,690 EFT Bank's records: Withdrawals and Debits $1,800 Check #534 Company's records: Cash disbursements $1,900 Check #532 $900 EFT $70 SE $4,180 EFT $2,400 Check #535 $4,500 Check #533 Click here to open graph in separate window. Answer the following questions (Use the following codes: DEP = deposits; EFT = electronic funds transfer; INT = interest earned; NOTE = note collected: NSF = non sufficient funds: SF = service fees): 4. Calculate the bank's adjusted balance of cash and the company's adjusted balance of cash (Hint: Begin with the month-end balances of cash in the bank statement and company records in the given information above). 5. Record the entries to adjust the company's cash balance. The EFT for $900 includes the cost of utilities in the current month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the bank's adjusted balance of cash and the company's adjusted balance of cash (Hint: Begin with the month-end balances of cash in the bank statement and company records in the given information above). Bank Company Adjusted cash balance Record the entry for cash received against notes receivable along with interest. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 Required 5 Record the entries to adjust the company's cash balance. The EFT for $900 includes the cost of utilities in the current month. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for cash paid against accounts receivable, utilities and service fees. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal

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

Contemporary Auditing Issues And Cases

Authors: Michael Chris Knapp

3rd Edition

0538891173, 9780538891172

Students also viewed these Accounting questions

Question

Understand links between the university business model and HRM.

Answered: 1 week ago