Accounting Answers

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

TOPIC: BANK RECONCILIATION

Directions: Research for the following questions and answer concisely using less than 5 sentences for each response.

1. Why are NFS Checks (not sufficient funds check) considered a debit memo?

2. Is a certified check considered to be an outstanding check?

A. Prepare the Balance Sheet with the given data.

• Accounts Payable - 47,845.00
• Accounts Receivable - 7,050.00
• Equipment and Supplies - 35,500.00
• Cash - 10,000.00
• Equity - 6,035.00
• Retained Earnings - 3,965.00
• Loan Payable - 10,780.00
• Inventory - 16, 075.00

A. Prepare an income statement given the following data:

• Insurance - 250.00
• Sales Revenue - 20,000.00
• Rent - 8,500.00
• Utilities - 750.00
• Payroll - 4,000.00
• Marketing - 2,500.00

A. Compute the missing information to prepare the Balance sheet given the following data.

a. Assets:

• Cash - 7,000.00
• Accounts Receivable - 600.00
• Inventory - 700.00
• Equipment - 1,000.00
• Total assets - ?

b. Liabilities:

• Accounts Payable - 1,900.00
• Loan Payable - ?
• Total Liabilities - 5,400.00

c. Equity:

• Owner's Equity - 2,700.00
• Retained Earnings - 1,200.00
• Total Equity - ?

1. What is the difference between daily tasks and weekly tasks record in a business?
2. What is the difference between financial statement and income statement?
3. Why is record keeping important in a business?

1. What are the three approaches in preparing bank statement?
2. Write the proforma entry of bank reconcilation using the adjusted balance method.

1. What are the reconciling items in the bank accounts?
2. What are the reconciling items in the book accounts?

A. Differentiate the three types of bank deposits.

• Savings Deposit
• Demand Deposit
• Time Deposit

A. The account of Pink Lady Company was tasked to perform monthly bank reconciliation. She downloaded the company's October 31 bank statement that showed a balance of 64,800.00. She also printed the cash ledger from the company's computerized accounting system. It states an ending balance of 16,700.00. She also found the following items:

• The bank statement showed bank service charge of 1,600.00
• The bank collected 3,000.00 from a note receivable for PX Manufacturing. 500.00 was charged as a collection fee.
• Deposits in transit, 102,000.00
• Checks outstanding on November 30, 158,200.00
• The accountant found a check issued to Oragon Corporation for 9,000 that cleared the bank but was not in the ledger.

(Required: Prepare a bank reconciliation using the adjusted balance)