Chapter 6 Assignment
1. Bank Reconciliation Statement Preparation 16 Points
Based on the following information prepare the bank reconciliation for Abco Corp.
From Bank Statement: From Books:
| | | Balance per company books | |
Note and interest collected by bank | | | | |
| | | Outstanding checks at 5/31 | |
| | | Error in recording check #100 | |
| | | | |
From the company records the following is noted:
Check #100 written by Abco- correct amount was $500, but was recorded on the books as $410. The check was properly recorded by the bank.
Bank Reconciliation
Balance per bank statement
Add:
Deduct:
Adjusted bank balance
Balance per books
Add:
Deduct
Adjusted book balance
2. Identifying Cash and Cash Equivalents 9 Points
Identify each of the following with the letter Y if you think that Yes each item is accounted for as cash or a cash equivalent, or N if you think that No each item is not accounted for as cash or a cash equivalent.
___A. Undeposited checks received from customers.
___B. A one year U. S. Treasury bill
___C. Postage stamps
___D. Petty Cash
___E. Investments in stock certificates to be sold in 3 months
___F. Currency and coin in a cash register drawer
___G. Commercial paper maturing in 60 days
___H. Cashiers check
___I. IBM bonds to be sold in 1 mon
