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