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    abusymom's Avatar
    abusymom Posts: 26, Reputation: 1
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    #1

    May 11, 2012, 02:26 PM
    Accounting questions
    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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's Avatar
    abusymom Posts: 26, Reputation: 1
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    #3

    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?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    May 11, 2012, 05:20 PM
    Correct.
    abusymom's Avatar
    abusymom Posts: 26, Reputation: 1
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    #5

    May 11, 2012, 05:21 PM
    Thank you!
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