1. Identify and list the deposits in transit at the end of December.
2. Identify and list the outstanding checks at the end of December.
3. Prepare a bank reconciliation for December.
4. Give any journal entries that the company should make as a result of the bank reconciliation. Why are they necessary?
5. After the reconciliation and journal entries are posted, what balance will be reflected in the CASH account in the ledger?
6. If the company also has $300 on hand, which is recorded in a different account called CASH ON HAND, what total amount of cash should be reported on the December 31st, 2006, balance sheet?
The bank reconciliation is presented in the attached Excel spreadsheet. The format used is a dual presentation which shows reconciling items for the bank on the left and for the books on the right. In the real world, bank reconciliations are often in a single format which begins with the bank balance and ends with the book balance. The reason this presentation is so helpful is that it shows exactly what entries need to be made in the books. Any reconciling items on the book side will ...
The solution presents the bank reconciliation in a format which allows the user to easily identify journal entries that must be made. Explanations for unusual transactions are included and explained in detail.