June 2012
Beginner
548 pages
15h 16m
English
book
Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition
by Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Content preview from Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition
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SOLUTION TO EXERCISE 7-7
*To add to the complexity of this exercise, you could be asked to solve for the $17,780 cash balance per bank statement. The computation would be as follows:
**To add to the complexity of this exercise, you could be asked to solve for the $19,404 cash balance per books at October 31, 2014. The computation would be as follows:
An alternate approach to solving for the balance per books before adjustment is illustrated in the Solution to Exercise 7-5 part (b) 2.
TIP: Keep in mind that deposits in transit and outstanding checks are reconciling items but do not require adjusting entries on either the bank's books or the depositor's books.
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