Internal Control and Cash Using Excel for a Bank Reconciliation Lori Anders of Wilderness Associates is getting ready to prepare the October bank reconciliation. The cash balance on the books of Wilderness Associates on October 31 is $3,546. Lori reviews the bank statement, and notes the cash balance at October 31 of $2,445. The bank statement also reveals that the bank collected a note receivable on behalf of Wilderness Associates the principal was $1,500 and the interest was $15. One customer's check for $29 was returned by the bank for insufficient funds. Two additional items on the bank statement were the monthly EFT for the utilities, $250, and the bank service fee of $12. Lori notes that the cash deposit made on October 31 of $3,300 does not appear on the statement, and that three checks 6 totaling $975 had not cleared the bank account when the bank statement was prepared.

D A B C Debit Credit Date Account/Explanation Notes Receivable Interest Revenue To record note receivable collected by the bank. Accounts Receivable Cash To record interest earned on the note receivable. Utilities Expense Cash To record bank service fee. Bank Expense Cash To record NSF check returned by bank. 24 To record payment of utilities by EFT. 25 26 28 29 HINTS 30 1. For all dates, enter the date in mm/dd/yyyy format. 31 2. For cell references, begin the formula with an equals sign (=), click on the balance in the ENTERANSWERS1 tab, and press the enter key. 32 3. When entering labels or accounts, click the arrow on the right side of the cell to select the appropriate label or account. Instructions ENTERANSWERS1 ENTERANSWERS2 Ready + Type here to search