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 17796.80Related Questions
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