Rancho Foods deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required
Rancho Foods deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of May 31 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account.
Balance as of May 1 ....................$9,578.00
CASH RECEIPTS FOR MONTH OF MAY .........$5,255.89
DUPLICATE DEPOSIT TICKETS:
Date and amount of each deposit in May:
Number and amount of each check issued in May:
MEMBER FDIC PAGE 1
AMERICAN NATIONAL BANK
1. Prepare a bank reconciliation as of May 31. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales except for the note receivable of $4,000 and interest of $160 collected on May 14. All checks are written to satisfy accounts payable.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
3. What is the amount of Cash that should appear on the balance sheet as of May 31?
4. Assume that a canceled check for $50 has been incorrectly recorded by the bank as $500.
Briefly explain how the error would be included in a bank reconciliation and how it should becorrected.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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