Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The bank statement for the checking account of Management Systems Incorporated (MSI) showed a December 31, 2024, balance of $15,835.12. Information that might be useful
The bank statement for the checking account of Management Systems Incorporated (MSI) showed a December 31, 2024, balance of $15,835.12. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks were $1,442.05. b. The December 31, 2024, cash receipts of $635 were not deposited in the bank until January 2, 2025. c. One check written in payment of rent for $258 was correctly recorded by the bank but was recorded by MSI as a $285 disbursement. d. In accordance with prior authorization, the bank withdrew $570 directly from the checking account as payment on a note payable. The interest portion of that payment was $410. MSI has made no entry to record the automatic payment. e. Bank service charges of $26 were listed on the bank statement. f. A deposit of $935 was recorded by the bank on December 13 , but it did not belong to MSI. The deposit should have been made to the checking account of MIS, Incorporated. g. The bank statement included a charge of $85 for an NSF check. The check was returned with the bank statement and the company will seek payment from the customer. h. MSI maintains a $210 petty cash fund that was appropriately reimbursed at the end of December. i. According to instructions from MSI on December 30 , the bank withdrew $16,000 from the account and purchased U.S. Treasury bills for MSI. MSI recorded the transaction in its books on December 31 when it received notice from the bank. Half of the Treasury bills mature in two months and the other half in six months. Required: 1. Prepare a bank reconciliation for the MSI checking account at December 31,2024 . You will have to compute the balance per books. 2. Prepare any necessary adjusting iournal entries indicated. Use the miscellaneous expense account to record the bank service 3. What amount would MSI report as cash and cash equivalents in the current asset section of the December 31 , 2024 , balan sheet? Complete this question by entering your answers in the tabs below. Prepare a bank reconciliation for the MSI checking account at December 31, 2024. You will have to compute the balance per books. Note: Round your answers to 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started