Bank Reconciliation: The Gift Shop Dec 31 2008
Not what you're looking for?
You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.
Write the procedure documentation for the monthly bank reconciliation process in a professional manner.
It will be the desktop guide used by others in the event of your absence to prepare the financial statements for The Gift Shop.
It may be in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
Prepare the monthly bank reconciliation for The Gift Shop based on the information provided.
Additional information needed for bank reconciliation preparation follows:
- Cash per the unadjusted trial balance is $12,675.
- Cash balance per the bank statement is $12,780.
- Check #115 has not cleared the bank. It was written for $645.
- A deposit of $1,000 cleared the bank but was not recorded in the general ledger.
- A check for $250 was found in the owner's desk drawer.
- A deposit of $1,250 was taken to the bank after 2 p.m. on December 31, 2008 and was not posted by the bank until January 1, 2009.
- Errors were noted in the following checks:
Check #121 was recorded for $325 but cleared the bank as $320.
Check #125 was recorded for $585 but cleared the bank as $600.
Important note: there is a bank fee of $30 that shows on the bank statement but was not originally included in the check register. Also with regarding to the a check for $250 was found in the owner's desk drawer, this check was taken to the bank after 2 p.m. on December 31, 2008 and was not posted by the bank until January 1, 2009.
Please use Excel for the bank reconciliation.
Purchase this Solution
Solution Summary
Your tutorial is a six-step procedure (list of six steps). The reconciliations shows bank and book balances reconciling to the same corrected cash amount.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Basics of corporate finance
These questions will test you on your knowledge of finance.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.