Biz 2257 Cheat Sheet Midterm 1.docx

2 Pages
Unlock Document

Western University
Business Administration
Business Administration 2257
Alexander Miller

Bank Reconciliation – determine proper cash balance for BS Steps to make a Bank Recon st Balance per company records, Dec 31 , 2000 1. Last month br – check to make sure any late deposits or Add: Cash Receipts o/s cheques are listed in this month’s Bank stmt, circle Less: Cash Disbursement those that are not and check those that are Add: Interest [Dr Cash, Cr Int Rev], Error 2. Cash disbursements (cheques register) – check off each Less: Service Charge [Dr SC Expense, Cash] cheque as it appears in this mo.’s bank stmt, circler errors. Loan/ other auto payments [DR CPBL/ w.e, CR Cash] Circle cheques that not on stmt NSF [DR A/R, Cr Cash, CR Sales Discount (if needed)] 3. Cash receipts list (bank deposits) – check off each deposit Mortgage as it appears, in stmt, circle errors and deposits there Adjusted cash balance per company, records Dec 31 , 2000 4. Go to bank statement – circle items not checked off Add: Late deposits in transit Less: Outstanding Cheques Establish/ increase Petty Cash: Dr PC Cr Cash st End-of-year replenish: DR Expenses CR Cash Adjusted Balance per bank records, Dec 31 2000 A4DA: Contra A/R, estimate of accounts that will not be collectible during the prd If balances do not reconcile look for: NRV A/R = A/R – A4DA - o/s cheques from prvs prd’s stmt Write-off: decreases a4da as a way of using portion we set a side for uncollectable - Addition errors in disbursements or receipt Write-off: DR A4DA, CR A/R lists Recovery: DR A/R, CR A4DA  DR Cash, CR A/R - Errors in copying #’s (219 vs 291) Cash collected = T/B A/R – E/B - Cash on hand or petty cash account Notes Receivable: DR N/R CR Cash or A/R BDE – accounts that were actually uncollected Asset Purchase Notes Rec. Principal x Interest Rate x n/12 mo.s + estimate of accounts that may go bad next Add in costs associated to N = # of mo’s to FYE or Maturity date prd but are still outstanding at prd end get asset to lctn and fully Estimate amt of accounts that will go bad operational less cash 1. Collection of N/R + Interest revenue: future prds and record expense this prd E/B A4DA = E/B A/R x Estimated % from selling stuff DR Cash, CR N/R, CR Interest Receivable BDE = T/B A4DA – E/B A4DA (Calc’d) 2. Note + Interest not collected by maturity: DR A/R, CR N/R, CR Interest Receivable Depreciation 3. Pays note after maturity:
More Less

Related notes for Business Administration 2257

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.