Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Journal Entries for Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Journal Entries for Bank Reconciliation

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Multiple Choice

Which of the following items would require a journal entry during the bank reconciliation process?

Errors made by the bank in recording transactions

Deposits in transit at month-end

Outstanding checks at month-end

Bank service charges identified on the bank statement

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Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process to ensure that the company's cash records match the bank's records, identifying discrepancies such as errors, timing differences, or unrecorded transactions.

Review each item listed in the problem to determine whether it requires a journal entry. For example, errors made by the bank in recording transactions do not require a journal entry because they are corrected by the bank, not the company.

Analyze deposits in transit at month-end: These are amounts already recorded in the company's books but not yet reflected in the bank statement. Since they are already accounted for, no journal entry is needed.

Evaluate outstanding checks at month-end: These are checks issued by the company but not yet cleared by the bank. They are already recorded in the company's books, so no journal entry is required.

Identify bank service charges on the bank statement: These are fees charged by the bank that the company may not have recorded yet. A journal entry is required to account for these charges in the company's books, typically debiting an expense account and crediting cash.