ADMS 2500 Study Guide - Final Guide: Bank Reconciliation, Petty Cash, Bank Statement

• School: York University
• Department: Administrative Studies
• Course: ADMS 2500
• Professor: all

Document Summary

Prepare bank reconciliation and adjusting journal entries for july. June 30 data balance per bank add: deposits in transit deduct: outstanding cheques balance per books. Step 1: determine deposits in transit for july. Actual july deposits shown on the july bank statement. Step 2: determine outstanding cheques at end of july. Cheques shown on july bank statement as clearing. Less cheques that were o/s on june 30. Step 3: construct the bank reconciliation per books. Step 4: propose and post adjusting journal entries to change cash balance to adjusted balance. Dr cash (please note that we would normally expect this to be split as part note and part interest income but no information was provided on the split) Also note that ,900 is the amount that would be reported on the balance sheet. Moral of the story is that you need to both reconcile the bank account and replenish petty cash before preparing the financials if you want accuracy.