abusymom
May 11, 2012, 02:26 PM
After a ban reconciliation is completed, adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement - True or False and can you please explain why? I've read this questions over & over and the more I read it, the more confused I am. Thanks!
pready
May 11, 2012, 04:42 PM
You only do adjusting entries for items on the bank statement that are not in your company's books like collection on notes, interest earned, if a customer makes a deposit into your account directly, a charge that is paid directly from your account, NSF charges, etc...
abusymom
May 11, 2012, 05:07 PM
So then the answer should be false because you don't make adjusting entries for both bank statements AND company's books. Correct?