BUSI 1003 Lecture Notes - Lecture 1: Bank Reconciliation, Direct Deposit, Retained Earnings
Document Summary
Balance per bank (,570 + ,550 - ,975). Balance per books (,995 + ,860 - ,990) Decrease in retained earnings (miscellaneous expense or bank service charge expense) Requirement 1: deposits in transit all deposits (#51 through #56) except #56 have been recorded by the bank; therefore, the deposit in transit is: #56, ,500. This amount can be verified as: ,000 + ,000 ,500 = ,500: cheques outstanding: inspection of the cheque numbers reveals that the following are outstanding: #121, ,000; #177, ,500; #178, ,000; and #179, ,500; total, This amount can be verified as: ,000 + ,000 ,000 = ,000. Or, may be included as a reconciling item, added to the bank. The cash balance is reported on the statement of financial position as ,450 (,050 + Increase in unearned income (or deferred revenue) Decrease in retained earnings (expense, bank service charge) 7-2 solutions manual to accompany intermediate accounting, volume 1, 6th edition.
