Question 1
The July bank statement for A & H Iron Works shows a balance of $37.94 and a service charge of $8.00. The account register shows deposits of $650 and $375.56 that do not appear on the statement. Checks in the amounts of $217.45, $57.82, $17.45, and $58.62 are outstanding. The register before reconciliation is $720.16. Reconcile the bank statement with the account register using the form in figure 4-48.
$ | BALANCE AS SHOWN ON BANK STATEMENT | BALANCE AS SHOWN IN YOUR REGISTER | $ | |
$ | TOTAL OF OUTSTANDING DEPOSITS | SUBTRACT AMOUNT OF SERVICE CHARGE | ||
$ | NEW TOTAL | NEW TOTAL | $ | |
-$ | SUBTRACT TOTAL OF OUTSTANDING CHECKS | ADJUSTMENTS IF ANY | $ | |
$ | YOUR ADJUSTED STATEMENT BALANCE | SHOULD <———-> EQUAL | YOUR ADJUSTED REGISTER BALANCE | $ |
Outstanding Deposits (Credits)$ | Outstanding Checks (Debits)$ | |||
Date | Amount | Check Number | Date | Amount |
$ | $ | |||
– | ||||
Total | $ | $ | ||
FIGURE 4-48 | ||||
Account Reconciliation Form |
Question 2
Identify and explain contemporaneous data issues that occur with the precedent transaction analysis. Keep that answer limited to one page.