Ch. 6 - Internal Controls and Reporting CashWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Accounting
Ch. 2 - Transaction Analysis
Ch. 3 - Accrual Accounting Concepts
Ch. 4 - Merchandising Operations
Ch. 5 - Inventory
Ch. 6 - Internal Controls and Reporting Cash
Ch. 7 - Receivables and Investments
Ch. 8 - Long Lived Assets
Ch. 9 - Current Liabilities
Ch. 10 - Time Value of Money
Ch. 11 - Long Term Liabilities
Ch. 12 - Stockholders' Equity
Ch. 13 - Statement of Cash Flows
Ch. 14 - Financial Statement Analysis
Ch. 15 - GAAP vs IFRS
Sections
Fraud and the Fraud Triangle
Sarbanes-Oxley Act
Five Components of Internal Controls
Principles of Control Activities
Limitations of Internal Controls
Petty Cash
Bank Reconciliation
Journal Entries for Bank Reconciliation
Additional Practice
Auditing
A bank reconciliation is an important Internal Control over the Cash account. By comparing the records in our accounting system to the statements received from the bank, we can ensure that our records are complete and error-free.

Concept #1: Bank Reconciliation: Bank Column

Concept #2: Bank Reconciliation: Book Column

Practice: A company has a current balance in its Cash account of $3,400. The bank statement arrived showing a bank balance of $5,900. Prepare the cash reconciliation noting the following events:

• Deposits in transit total $600

• EFT receipt of dividend revenue of $900

• Bank error: the bank deducted $100 for a check written by another company.

• Service charge $20

• NSF check from a customer $50

• Book error: Company Check no. 333 was recorded for $510. The actual amount paid on account was $150.

• Outstanding checks total $2,010