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

Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Bank Reconciliation

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Multiple Choice

Which of the following items will require a journal entry in the company's books following a bank reconciliation?

Bank service charges

Outstanding checks

Deposits in transit

Bank errors

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Verified step by step guidance

Understand the purpose of a bank reconciliation: It is a process to compare the company's cash records with the bank statement to identify discrepancies and ensure accuracy.

Identify the items listed in the problem: Bank service charges, outstanding checks, deposits in transit, and bank errors.

Determine which items require a journal entry: Bank service charges and bank errors directly affect the company's books and require adjustments through journal entries. Outstanding checks and deposits in transit are timing differences and do not require journal entries.

Explain why bank service charges require a journal entry: These are fees charged by the bank that reduce the company's cash balance, and the company must record them to reflect the correct cash balance in its books.

Explain why bank errors require a journal entry: If the bank makes an error that affects the company's cash balance, the company must adjust its records to correct the discrepancy.