Description
Need it back in 1 hour.For this application assignment, you are going to complete a Bank Reconciliation. Bank reconciliations are a key component of cash and internal controls for an organization and a primary responsibility of the accounting department. The Appendix A for Chapter 6 reviews several cash related items, and bank reconciliations are covered on pages 6-39 to 6-41. In the attached Excel file I have provided the problem instructions on the first tab, the Bank Reconciliation and JE’s workpapers (to be completed by you) on the second tab, and a Quick Reference for bank reconciliations on the third tab that you might find useful in preparing the reconciliation. 1. Your assignment is to complete the Bank Reconciliation (part a) using the format provided in the text, Illustration 6A-1 on page 6-40. Then, you must complete the related journal entries for the reconciliation (part b). You will only be completing this one tab in the Excel workbook (the highlighted orange tab). 2. Once you have completed this tab, rename the workbook with the following format “last name.first name_App2_Ch6” and submit by the due date. This assignment is worth 25 points.HELPFUL HINT: Remember that all journal entries will be an addition to or subtraction from the Cash account – so Cash will always be involved in each journal entry. Also remember the purpose of the journal entries is to take the beginning cash balance (before the reconciliation) and book the debits/credits necessary to make the ending cash balance on the ledger the same as the calculated ending cash balance. Do not combine different events into one journal entry.
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Use the textbook Appendix 6A to complete this problem. (pgs 6-39 to 6-41)
(Bank Reconciliation and Adjusting Entries)
The cash account of Aguilar Co. showed a ledger balance of $3,685.20 on June 30, 2024. The bank
statement as of that date showed a balance of $5,999.25. Upon comparing the statement with the cash
records, the following facts were determined.
1.
2.
3.
4.
5.
6.
7.
Instructions
(a)
(b)
Prepare a bank reconciliation dated June 30, 2024, proceeding to a correct cash balance.
Prepare any entries necessary to make the general ledger correct and complete.
*Assume sales related to deposit errors were on account. HINT: Your adjustment is an Accounts Receivable is
**Assume the check error related to Equipment purchase was on account, meaning the original entry to
Equipment and Accounts Payable was correct. HINT: Your adjustment is an Accounts Payable issue.
the textbook Appendix 6A to complete this problem. (pgs 6-39 to 6-41)
(Bank Reconciliation and Adjusting Entries)
The cash account of Aguilar Co. showed a ledger balance of $3,685.20 on June 30, 2024. The bank
statement as of that date showed a balance of $5,999.25. Upon comparing the statement with the cash
records, the following facts were determined.
There were bank service charges for June of $43.
A bank memo stated that Bao Dai’s note for $2,100 and interest revenue of $107.25 had
been collected on June 29, and the bank had made a charge of $25.00 as fees for the
collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the
bank for collection.)
Cash receipts for June 30 for $1,423.40 were not deposited until July 2.
Checks outstanding on June 30 totaled $1,926.70.
The bank had charged the Aguilar Co.’s account for a customer’s uncollectible (NSF) check
amounting to $138.50 on June 29.
A customer’s check for $465 had been deposited correctly at the bank but entered as $435
in the cash receipts journal by Aguilar on June 15.
Check no. 742 correctly written in the amount of $960 had been entered in the cash journal
as $690, and check no. 747 correctly written in the amount of $340.00 had been entered as
$390.00. Both checks had been issued to pay for purchases of equipment which was
entered into the ledger correctly on initial transaction. (HINT- Treat as two separate items on
the reconciliation)
Instructions
Prepare a bank reconciliation dated June 30, 2024, proceeding to a correct cash balance.
Prepare any entries necessary to make the general ledger correct and complete.
*Assume sales related to deposit errors were on account. HINT: Your adjustment is an Accounts Receivable issue
**Assume the check error related to Equipment purchase was on account, meaning the original entry to
Equipment and Accounts Payable was correct. HINT: Your adjustment is an Accounts Payable issue.
(a)
Aguilar Co.
Bank Reconciliation
June 30, 2024
(b) Be sure to provide descriptions. Journalize each item separately.
Date
Account Titles
Debit
Credit
Bank Reconciliation
Balance as per bank statement
Add:
Deposits in Transit
Deduct:
Outstanding Checks
=
Correct Cash Balance
$
+
$
Balance as per Books at Month End
Add:
Notes Collected by Banks
Deduct:
Bank Fees
NSF checks
Add or Deduct:
Book Errors
Correct Cash Balance
Note: All additions or deductions made to the final “Balance per Books”, as calculated, must actually be booked
with a journal entry to get the book balance correct.
Examples:
(1) Notes collected by bank
JE:
Cash
Notes Receivable (principal)
Interest Revenue (interest)
(2) Bank Fees and service charges
JE:
Office Expense
Cash
(3) Book errors for checks (AP)/deposits (AR)
JE:
Cash
Accounts Receivable/Payable
OR
Accounts Receivable/Payable
Cash
Debit
Credit
xx
xx
xx
xx
xx
xx
xx
xx
(if under-recorded customer deposit or o
(if over-recorded customer deposit or un
xx
(4) NSF check – a customer check that was deposited to our account that was returned as not funded by the customers acco
JE:
Accounts Receivable
xx
Cash
xx
$
+
+/$
ecorded customer deposit or over-recorded check payment)
corded customer deposit or under-recorded check payment)
funded by the customers account
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