Expense Recognition

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Expense Recognition

Do Not Copy. Order Custom, Original Paper.

You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.

  • Write the procedure documentation for the monthly bank reconciliation process in a professional manner.
    • It will be the desktop guide used by others in the event of your absence to prepare the financial statements for The Gift Shop.
    • It may be in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
  • Prepare the monthly bank reconciliation for The Gift Shop based on the information provided.

Additional information needed for bank reconciliation preparation follows:

  • Cash per the unadjusted trial balance is $12,675.
  • Cash balance per the bank statement is $12,780.
  • Check #115 has not cleared the bank. It was written for $645.
  • A deposit of $1,000 cleared the bank but was not recorded in the general ledger.
  • A check for $250 was found in the owner’s desk drawer.
  • A deposit of $1,250 was taken to the bank after 2 p.m. on December 31, 2008 and was not posted by the bank until January 1, 2009.
  • Errors were noted in the following checks:
    • Check #121 was recorded for $325 but cleared the bank as $320.
    • Check #125 was recorded for $585 but cleared the bank as $600.
    • Bank service charge reported on the bank statement $30.00

Must be done in 2-4 pages 


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