The cash account for Deaver Consulting at October 31, 2016, indicated a balance of $11,580. The...

 

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The cash account for Deaver Consulting at October 31, 2016, indicated a balance of $11,580. The bank statement indicated a balance of $14,840 on October 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,340. b. A deposit of $5,570, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,890 on a note left for collection. The face of the note was $2,750. d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $730 had been incorrectly charged by the bank as $30. f. Bank service charges for October amounted to $30. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement Adjusted balance Cash balance according to Deaver Consulting 9.8 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Adjusted balance Increases to Cash: Oct. 31 Statement of Cash Flows Decreases to Cash: Oct. 31 Statement of Cash Flows Assets + Assets + Balance Sheet = = Balance Sheet Liabilities + Stockholders' Equity Liabilities + Income Statement + Stockholders' Equity + Income Statement The cash account for Deaver Consulting at October 31, 2016, indicated a balance of $11,580. The bank statement indicated a balance of $14,840 on October 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $5,340. b. A deposit of $5,570, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $2,890 on a note left for collection. The face of the note was $2,750. d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $730 had been incorrectly charged by the bank as $30. f. Bank service charges for October amounted to $30. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement Adjusted balance Cash balance according to Deaver Consulting 9.8 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Adjusted balance Increases to Cash: Oct. 31 Statement of Cash Flows Decreases to Cash: Oct. 31 Statement of Cash Flows Assets + Assets + Balance Sheet = = Balance Sheet Liabilities + Stockholders' Equity Liabilities + Income Statement + Stockholders' Equity + Income Statement

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Deaver Consulting Bank Reconciliation October 31 20Y6 Cash balance according to bank statement 14840 ... View the full answer