Accounting 2000 Chapter 7 Notes 1 Prepare a bank reconciliation Control Features Use of a Bank Contributes to good internal control over cash Minimizes the amount of cash on hand Creates a double record of bank transactions Bank reconciliation Bank Statements Debit Memorandum Credit Memorandum Bank service charge NSF not sufficient funds Collect notes receivable Interest earned 1 Reconcile balance per bank statement and balance per books to their adjusted Accounting 2000 Chapter 7 Notes Reconciling the Bank Account corrected true balances Reconciling Items 1 Deposits in transit 2 Bounced checks 3 Bank charges 4 Errors 2 Accounting 2000 Chapter 7 Notes 3 Accounting 2000 Chapter 7 Notes Journal Entries for Bank Reconciliation Journalize the adjusting entries at April 30 on the books of Laird Company To record collection of note receivable by bank Apr 30 Dr Cash 1035 Miscellanous Expsense 15 Cr Note Receievable 1000 Interest Rev 50 To record NSF check receive check for customer Apr 30 Dr A R 425 60 Dr Cash Cr Cash 425 60 Cr A R To record charge for printing company checks Earlier we recorded Apr 30 Dr Cash 36 A P 1262 Cr A P 36 Cash 1262 To correct error in recording check No 443 Apr 30 4 Accounting 2000 Chapter 7 Notes In class Exercises E7 9 and P7 5A 5
View Full Document
Unlocking...