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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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EXERCISE 7-7

Purpose: (L. O. 7) This exercise will allow you to practice preparing a bank reconciliation.

A bank reconciliation should be prepared by a depositor every month.

The cash balance per bank at October 31 is $17,780, and the cash balance per Molly's Folly books at October 31 is $19,404.

Instructions

  1. Using the data in Exercise 7-6 and the solution to that exercise, prepare a bank reconciliation for Molly's Folly at October 31, 2014.
  2. Prepare the adjusting entries at October 31 for the depositor's books. Assume check No. 532 was issued to the power company for utilities.

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