80.2K

Verified Solution

Link Copied!

Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Excel and use the ending balance in your cash account for the ending cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account in your T-Account before starting the Bank Reconciliation. Please use the correct balance in the cash account to start on the book side of the reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank Reconciliation is located on the following page. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the Bank Reconciliation. Once you finish the Bank Reconciliation follow the instructions below: Step 1: Use the template on the next page to create an Excel spreadsheet to show the reconciled balance using the Bank Statement and the correct ending balance in the cash account. Once the bank reconciliation is completed, print it out. Step 2: Use the Excel spreadsheet to answer the questions in Blackboard in the content folder for the corresponding week. Step 3: Once you complete entering all the information into Blackboard, upload the Bank Reconciliation into Blackboard. Bank Statement Wells Fargo Bank Page 1 POBox12345 El Paso, Texas 79998-2345 Hit the Slopes 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT "Hit the Slopes" Bank Reconciliation Wells Fargo Bank Balance "Hit the Slopes" Ending Cash Balance Ending Cash Balance Adjustments or Errors +/- Deposits in Transit Reconciled Balance Outstanding Checks Adjustments or Errors +/- Reconciled Balance 15/Pa sactions Dr10.000$70.000r39003&70.000 Purchased a new computer system that cost $5,200 from Computer Inc. for use in the business. Mr. Slant signed a six-month, 10\% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $100. This will be recorded as Computer Equipment, and depreciated accordingly using straight line depreciation. Only record the purchase at this time. Signed a note payable to borrow $10,000 from Wells Fargo bank. Interest is 12% annually and the note is to be repaid with interest in twelve months. Only record the receipt of the note. Paid $1,100 for shipping supplies. Paid $14,600 for furniture and fixtures for the store. The estimated service life of this asset is 8 years. The residual (salvage) value is $200. These items will be recorded as Furniture and Fixtures and will be depreciated using straight line depreciation. Only record the purchase. Arranged for Sun City Movers to make the delivery and for the setup of the computer system and paid the delivery and setup charge of $750. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. Purchased $450 of office supplies for cash from Office Supplies Company. Purchased $8,000 of merchandise inventory-skis on account. Purchased $6,000 of merchandise inventory-snow boards on account. There were no credit terms for prompt payment. \begin{tabular}{|c|l|l|l|} \hline 13. & 1/13/23 & Ck #1007 & Mr.Slantreceivedandpaidthe$940chargefromlawyer. \\ \hline 14. & 1/14/23 & & HittheSlopes,Inc.isnowopenforbusiness.Customers \\ \hline \end{tabular} will go on-line and select the merchandise they wish to purchase. Online payments will be considered cash sales. Sold merchandise for $7,200 cash. The cost of the Skis is $3.000 and the cost of the Snowboards is $1,100. Sales tax will be $594. The merchandise will be shipped FOB destination. \begin{tabular}{|c|l|l|l|} \hline 16. & 1/16/23 & Ck \#1008 & Paid $250 to ship the merchandise. \\ \hline 17. & 1/16/23 & & Purchased additional skis on account for $4,500. \\ \hline 18. & 1/20/23 & Deposit \#4 & Recordedinternetsalesforthefirstfivedaysofoperation.Salestotaled$8,300. Sales tax is $536. The \\ \hline \end{tabular} Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January. Prepare it in Excel and use the ending balance in your cash account for the ending cash for your books. Be prepared to turn in the Bank Reconciliation after answering the questions in Blackboard. Requirements 1. Make sure you have corrected any errors on your journal and adjusting journal entries and have the correct balance for the cash account in your T-Account before starting the Bank Reconciliation. Please use the correct balance in the cash account to start on the book side of the reconciliation. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. A template you can use to create a Bank Reconciliation is located on the following page. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the Bank Reconciliation. Once you finish the Bank Reconciliation follow the instructions below: Step 1: Use the template on the next page to create an Excel spreadsheet to show the reconciled balance using the Bank Statement and the correct ending balance in the cash account. Once the bank reconciliation is completed, print it out. Step 2: Use the Excel spreadsheet to answer the questions in Blackboard in the content folder for the corresponding week. Step 3: Once you complete entering all the information into Blackboard, upload the Bank Reconciliation into Blackboard. Bank Statement Wells Fargo Bank Page 1 POBox12345 El Paso, Texas 79998-2345 Hit the Slopes 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT "Hit the Slopes" Bank Reconciliation Wells Fargo Bank Balance "Hit the Slopes" Ending Cash Balance Ending Cash Balance Adjustments or Errors +/- Deposits in Transit Reconciled Balance Outstanding Checks Adjustments or Errors +/- Reconciled Balance 15/Pa sactions Dr10.000$70.000r39003&70.000 Purchased a new computer system that cost $5,200 from Computer Inc. for use in the business. Mr. Slant signed a six-month, 10\% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $100. This will be recorded as Computer Equipment, and depreciated accordingly using straight line depreciation. Only record the purchase at this time. Signed a note payable to borrow $10,000 from Wells Fargo bank. Interest is 12% annually and the note is to be repaid with interest in twelve months. Only record the receipt of the note. Paid $1,100 for shipping supplies. Paid $14,600 for furniture and fixtures for the store. The estimated service life of this asset is 8 years. The residual (salvage) value is $200. These items will be recorded as Furniture and Fixtures and will be depreciated using straight line depreciation. Only record the purchase. Arranged for Sun City Movers to make the delivery and for the setup of the computer system and paid the delivery and setup charge of $750. This charge should be added to the cost of the computer equipment purchased and depreciated on the same basis as the computer equipment. Purchased $450 of office supplies for cash from Office Supplies Company. Purchased $8,000 of merchandise inventory-skis on account. Purchased $6,000 of merchandise inventory-snow boards on account. There were no credit terms for prompt payment. \begin{tabular}{|c|l|l|l|} \hline 13. & 1/13/23 & Ck #1007 & Mr.Slantreceivedandpaidthe$940chargefromlawyer. \\ \hline 14. & 1/14/23 & & HittheSlopes,Inc.isnowopenforbusiness.Customers \\ \hline \end{tabular} will go on-line and select the merchandise they wish to purchase. Online payments will be considered cash sales. Sold merchandise for $7,200 cash. The cost of the Skis is $3.000 and the cost of the Snowboards is $1,100. Sales tax will be $594. The merchandise will be shipped FOB destination. \begin{tabular}{|c|l|l|l|} \hline 16. & 1/16/23 & Ck \#1008 & Paid $250 to ship the merchandise. \\ \hline 17. & 1/16/23 & & Purchased additional skis on account for $4,500. \\ \hline 18. & 1/20/23 & Deposit \#4 & Recordedinternetsalesforthefirstfivedaysofoperation.Salestotaled$8,300. Sales tax is $536. The \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer