Business Administration 2257 Study Guide - Midterm Guide: Petty Cash, List Of The Shield Episodes, Bank Statement
4 Dec 2017
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Transactions recorded by the company of which the bank is unaware: Transactions of which both the company and bank are aware of: no action required. Transactions recorded by the bank of which the company is unaware: collections made by bank, nsf cheques, service charges, company errors, interest earned on account. Objectives of a bank rec: verify company and bank records are correct and in agreement, determine proper cash balance that should appear on company"s balance sheet, prepare correcting entries to update company records to reflect proper cash balance. Petty cash cheque errors (669 vs 966) If balances don"t reconcile look for : outstanding cheques from previous periods bank rec, addition errors in disbursements or receipts lists, errors in copying numbers, cash on hand/petty cash account. Accounts receivable: money owed to company for goods and services purchased on credit, sale is treated as an invoice after customer is billed for the goods/services received.
