View Policies Current Attempt in Progress The following is a list of items that could cause the book balance for cash of Splish Brothers Services to differ from Splish Brothers's bank statement balance from RBC (Royal Bank). (a) Identify if the item should be included as a reconciling item in Splish Brothers's bank reconciliation, Indicate if a journal entry will be needed to correct any of the account for Splish Brothers. Journal Entry? Type of reconciling item 1. A deposit of collections on account from customers was made, but the amount did not match what appeared on the bank statement. The correct amount of $4,360, shown on the bank statement should have been used in Splish Brothers's books instead of the amount recorded of $4.458 Included on the bank statement is an automatic charge for Splish Brothers Service's monthly mortgage payment. The amount of the payment was $920 of which $550 is principal. Splish Brothers's bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month 2. 3 4. 5. When retracing cheque payments to the journals during the bank reconciliation process, it was noticed that a $1,540 cheque payable to Splish Brothers Service's landlord for the current month's rent, was charged to Advertising Expense. On the previous month's bank reconciliation, an outstanding cheque for $330 for a final pay cheque of a part-time employee had not yet been cashed. On the current month bank statement, the cheque has still not cleared the bank account. Splish Brothers has an agreement with RBC to collect notes receivable and any outstanding interest on the notes. Splish Brothers's bookkeeper waits to record any collection until the amounts are reported by RBC. because it is not predictable how much of the collection will be interest. On the current bank statement, an entry appears for a deposit of $1.140 for a collection of a note with a principal amount of $960. Appearing on the bank reconciliation is a charge for an NSF cheque of $580 which had been deposited earlier in the month by Splish Brothers as a payment on account by a new customer. RBC had added an additional charge of $22 for processing the NSF cheque. Because the customer was new, Splish Brothers warned the customer that any NSF charges would be added to the amount owing from the customer. 6. 7. A cheque correctly issued in the amount of $490 as a animent an account anniversaincarcerat MacBook Pro : 7. had added an additional charge of $22 for processing the NSF cheque. Because the customer was new, Splish Brothers warned the customer that any NSF charges would be added to the amount owing from the customer. A cheque correctly issued in the amount of $490 as a payment on account to a supplier was incorrectly recorded in the books as $590. Two cheques totalling $324, which were outstanding at the end of the last month, cleared in the current month's bank statement Included in the bank statement are charges of $35 for the use of debit cards by Splish Brothers's customers. Splish Brothers waits for the information to be processed by the bank before recording them in the books. 8. 9. Save for Later Attempts: 0 of 1 used Submit Answer Question Part Score --/9
