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Financial Accounting Principles Assessment 3: Internal Control and Accounting fo

ID: 2794127 • Letter: F

Question

Financial Accounting Principles

Assessment 3: Internal Control and Accounting for Assets Worksheet

Use this worksheet to complete the following three exercises for Assessment 3. Refer to the instructions in the course for submitting your assessment.

Exercise 3-1

The Scheiffer Company’s most recent bank statement and book balances of cash reconciliations were completed on September 30, 2012. Two checks were reported outstanding: check #6798 for $1135.50 and check #6794 for $524.00. The following information is available for the October 31, 2012 reconciliation.

Section of the October 31 Bank Statement

Previous Balance

Total Checks & Deposits

Total Deposits & Credits

Current Balance

16,345.50

9,695.55

11,146.85

17,796.80

Checks and Debits

Deposits and Credits

Daily Balance

Date

No.

Amount

Date

Amount

Date

Amount

10/02

6798

1,135.50

10/04

1,214.50

09/30

16,345.50

10/05

7002

815.00

10/11

2,054.55

10/02

15,210.00

10/09

7001

1,788.50

10/20

3,990.25

10/04

16,424.50

10/15

605.75

NSF

10/23

2,436.80

10/05

15,609.50

10/19

7004

954.00

10/29

20.75

IN

10/09

13,821.00

10/22

7003

405.35

10/29

1,430.00

CM

10/11

15,875.55

10/25

7005

1,985.95

10/15

15,269.80

10/26

7007

310.35

10/19

14,315.80

10/30

7009

1,695.15

10/20

18,306.05

10/22

17,900.70

10/23

20,337.50

10/25

18,351.55

10/26

18,041.20

10/29

19,491.95

10/30

17,796.80

From Scheiffer’s Accounting Records

Cash Receipts Deposited

Date

Cash Debit

Oct

4

1,214.50

11

2,054.55

20

3,990.25

23

2,436.80

9,696.10

Cash Disbursements

Check No.

Cash Credit

7001

1,788.50

7002

815.00

7003

405.35

7004

954.00

7005

1,955.95

7006

880.50

7007

310.35

7008

325.10

7009

1,695.15

9,129.90

Cash

Account #101

Date

Explanation

PR

Debit

Credit

Balance

Sep

30

Balance

14,686.00

Oct

31

Total receipts

R12

9,696.10

24,382.10

31

Total disbursements

D23

9,129.90

15,252.20

Check #7005 was drawn correctly for $1985.95 to pay for office equipment. The recordkeeper recorded it as a debit for Office Equipment and a credit to Cash for $1955.95, but misread the amount of the check, which was $1985.95. The non-sufficient funds check for a $605.75 account payment was received from a customer, A. B. Fransen. The company has not yet recorded the returned check. The credit memo is the bank’s collection on a $1450.00 note and shows the deduction of a $20.00 collection fee. The company has not recorded the collection or the fee.

Based on the information provided, complete the following tasks:

Prepare an October 31, 2012, bank reconciliation for the Scheiffer Company.

SCHEIFFER COMPANY

Bank Reconciliation

October 31, 2012

[Create the bank reconciliation here.]

Previous Balance

Total Checks & Deposits

Total Deposits & Credits

Current Balance

16,345.50

9,695.55

11,146.85

17,796.80

Explanation / Answer

Hint:- simply adjust in your books of account for whatever is there or not there in bank account.

if there is deposit in bank account but deposit is missing in your books: add it

similarily if bank fee has been charged but you havent shown it in ur account: less it from your balance.

if you have shown clearance of check in ur account , but same hasen't cleared from bank account: add it back in ur account

ITS LIKE 1 to 1 tally;- whatever has been done in bank account match it with ur books of accounts

particular amount Balance as per books of accounts 15252.20 Add:- #6798 outstanding check    524.00 Add:- #7006 outstanding check    880.50 Add:- #7008 outstanding check    325.10 Add:- Interest on bank account    20.75 Add:- credit memo 1450.00 Less:- Bank collection fee   ( 20.00) Less:-#7005 check wrongly recorded by(1985.95-1955.95)   ( 30.00) Less:- Customer NSF check returned but not recorded (605.75) Balance as per Bank account 17796.80
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