The bank statement for the checking account of Management Systems

The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2021, balance of $14,632.12. Information that might be useful in preparing a bank reconciliation is as follows:
a. Outstanding checks were $1,320.25.
b. The December 31, 2021, cash receipts of $575 were not deposited in the bank until January 2, 2022.
c. One check written in payment of rent for $246 was correctly recorded by the bank but was recorded by MSI as a $264 disbursement.
d. In accordance with prior authorization, the bank withdrew $450 directly from the checking account as payment on a note payable. The interest portion of that payment was $350. MSI has made no entry to record the automatic payment.
e. Bank service charges of $14 were listed on the bank statement.
f. A deposit of $875 was recorded by the bank on December 13, but it did not belong to MSI. The deposit should have been made to the checking account of MIS, Inc.
g. The bank statement included a charge of $85 for an NSF check. The check was returned with the bank statement and the company will seek payment from the customer.
h. MSI maintains a $200 petty cash fund that was appropriately reimbursed at the end of December.
i. According to instructions from MSI on December 30, the bank withdrew $10,000 from the account and purchased U.S. Treasury bills for MSI. MSI recorded the transaction in its books on December 31 when it received notice from the bank. Half of the Treasury bills mature in two months and the other half in six months.

Required:
1. Prepare a bank reconciliation for the MSI checking account at December 31, 2021. You will have to compute the balance per books.
2. Prepare any necessary adjusting journal entries indicated.
3. What amount would MSI report as cash and cash equivalents in the current asset section of the December 31, 2021, balance sheet?

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.