Chapter $7-$ Take$-$Home Assignment

Question $2.)$ Bank Reconciliation

Step $1$: Identify the unadjusted general ledger cash balance. $($Book Balance$)$

Step $2$: Identify the unadjusted cash balance on the bank statement. $($Bank Balance$)$

Step $3$: Outstanding cheques are identified

There are two ways cheques can be outstanding. $($a$)$ Cheques your company has received that have not yet cleared the bank. $($b$)$ Cheques your company has written that have not been cashed yet.

$($a$)$ Outstanding cheques received by the company, and recorded on company records, are compared to the cheques recorded on the bank statement

$($b$)$ Cash payments made by your company, and recorded on company records, are compared to cheques that have been paid out by the ban

Cheque # $=$

Cheque $$=$

Cheque # $=$

Cheque $$=$

Cheque # $=$

Cheque $$=$

Cheque # $=$

Cheque $$=$

Step $4$: Other payments made by the bank are identified on the bank statement and subted from the unreconciled book balance on the bank reconciliation.

$($a$)$ NSF cheques $=$

$($b$)$ Banks Service Charges $($not yet recorded$)=$

Step $5$: Last month's bank reconciliation is reviewed for outstanding deposits.

Step $6$: Deposits shown on the bank statement are compared with amounts recorded in the company records.

Interest $=$

Step $7$: Any errors in the company's records or in the bank statement must be identified.

Company errors $=$

Bank errors $=$