Thank you Test: Test- Chapters 1-4 Question 4 of 4 This Question: 25 pts This Te

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Thank you Test: Test- Chapters 1-4 Question 4 of 4 This Question: 25 pts This Testi 100 pts Time 00:38:10 The cash data of Durkin Automotive for October 2014 follow (Click the icon to iew the checkbook.) Durkin Automotive received the following bank statement on October 31, 2014 Cick the icon to wiew the bank statement)(Cick the icon to vwew the additional data for the bank reconciliation) con to view the bank statement) ( (Cick the icon to wiew the additional data for the bank reconciliation) Requirements 1. Prepare the Durkin Automotive bank reconciliation at October 31, 2014. 2. Prepare the journal entries required at October 31, 2014 3. Describe how a a bank account and the bank reconciliation help the general manager control Durkin Automotive's cash. Requirement 1. Prepare the Durkin Automotive bank reconciliation at October 31, 2014 Prepare the bank at October 31 in each of the subtotal calculations.) k section of the bank reconciliation, then prepare the book section of the bank reconciliation. (Include the balances Durkin Automotive Bank Reconciliation October 31, 2014 Bank Balance, October 31. 2014 Add Choose from any list or enter any number in the input fields, then continue to the next question Choose from any list or enter any number in the input fields, then continue to the next arch the web and Win

Explanation / Answer

    1.00 Dunkin Automotive Bank reco As on Oct 31.2014. Details Amt $ Balance as per Bank statement                 9,085.00 Add : Deposits in transit Chk 29                     859.00 Chk 30                 2,365.00 Total Depsoits in Transit                 3,224.00 Less : Oct 23 depsoit not in cash GL               (1,475.00) Less : EFT deposit not in Cash GL                  (600.00) Less : Checks Outstanding Check 3119                     502.00 Check 3120                 1,021.00 Check 3121                     207.00 Check 3122                 2,391.00 Total Checks Outstanding               (4,121.00) Add : EFT debit not in GL                     402.00 Add : Bank chanrges not in GL                       25.00 Add : Unsigned check amt debited not in Cash GL                     488.00 Less : Mistake in Check 3115 in Cash GL                  (450.00) Balance as on Oct 31 2014. as per Cash GL                 6,578.00     2.00 Journal Entries on Oct 31.2014. Account Title Dr $ Cr $     1.00 Cash                 1,475.00 Accounts Receivable                1,475.00     2.00 Cash                     600.00 Accounts Receivable-Rent                    600.00     3.00 Insurance Expense                     402.00 Cash                    402.00     4.00 Bank Charges                       25.00 Cash                      25.00     5.00 Accounts Receivable                     488.00 Cash                    488.00     6.00 Accounts Payable                    450.00 Cash                       450.00     3.00 The Bank account and bank reconciliation helps in cash management in many ways. Firstly it given the true position od cash, it helps rectify many mistakes , the collections and payments through bank are updated and accounted due to this reconciliation.   Also the paymnets and receipts by checks can be cross verified for authenticity from bank statement

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