Show work on Excel ® spreadsheet and submit with analysis .
Purpose of Assignment
Reconciling bank accounts is a good way to help maintain internal controls over cash . With time lags and posting errors it is easy for cash transactions to be omitted , recorded in a different accounting period , or reflect incorrect amounts . This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank ' s records .
Assignment Steps
Resources : Financial Accounting : Tools for Business Decision Making
Scenario : Daisey Company is a very profitable small business . It has not , however given much consideration to internal control . For example , in an attempt to keep clerical and office expenses to a minimum , the company has combined the jobs of cashier and book-keeper . As a result , Bret Turrin handles all cash receipts , keeps the accounting records , and prepares the monthly bank reconciliations .
The balance per the bank statement on October 31 , 2017 , was $ 18,380 . Outstanding checks were No . 62 for $ 140.75 , No . 183 for $ 180 , No . 284 for $ 253.25 , No . 862 for $ 190.71 , No . 863 for $ 226.80 , and No . 864 for $ 165.28 . Included with the statement was a credit memorandum of $ 185 indicating the collection of a note receivable for Daisey Company by the bank on October 25 .
This memorandum has not been recorded by Daisey .
The company ' s ledger showed one Cash account with a balance of $ 21,877.72 . The balance included undepositied cash on hand . Because of the lack of internal controls , Bret took for