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    Intermediate Accounting IFRS Edition: Kieso, Weygandt, Warfield

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    Intermediate Accounting IFRS Edition: Kieso, Weygandt, Warfield

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    dystopian au.
    229 views16 pages

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    Rekonsiliasi Bank

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    229 views16 pages

    Intermediate Accounting IFRS Edition: Kieso, Weygandt, Warfield

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    dystopian au.

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    of 16

    Intermediate Accounting

    IFRS Edition
    Kieso, Weygandt, Warfield
    Fourth Edition

    Chapter 7
    Cash and Receivables
    Prepared by
    Coby Harmon
    University of California, Santa Barbara
    Westmont College

    This slide deck contains animations. Please disable animations if they cause issues with your device.
    Copyright ©2020 John Wiley & Sons, Inc.
    Learning Objectives
    After studying this chapter, you should be able to:
    LO 1 Indicate how to report cash and related items.
    LO 2 Define receivables and explain accounting issues related
    to their recognition.
    LO 3 Explain accounting issues related to valuation of
    accounts receivable.
    LO 4 Explain accounting issues related to recognition and
    valuation of notes receivable.
    LO 5 Explain additional accounting issues related to accounts
    and notes receivables.

    Copyright ©2020 John Wiley & Sons, Inc. 2


    PREVIEW OF CHAPTER 7

    Copyright ©2020 John Wiley & Sons, Inc. 3


    Learning Objective 6
    Explain common techniques employed
    to control cash.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 4


    Cash Controls
    Management faces two problems in accounting for cash
    transactions:
    1. Establish proper controls to prevent any unauthorized
    transactions by officers or employees.
    2. Provide information necessary to properly manage cash on
    hand and cash transactions.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 5


    Using Bank Accounts
    To obtain desired control objectives, a company can vary the
    number and location of banks and the types of accounts.
    • General checking account
    • Collection float
    • Lockbox accounts
    • Imprest bank accounts

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 6


    The Imprest Petty Cash System
    Steps 1 and 2
    Used to pay small amounts for miscellaneous expenses.
    Steps:
    1. Record the transfer of $300 to petty cash:
    Petty Cash 300
    Cash 300

    2. Petty cash custodian obtains signed receipts from each


    individual to whom he or she pays cash.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 7


    The Imprest Petty Cash System
    Step 3
    Steps:
    3. Custodian receives a company check to replenish the fund
    when the fund runs low.
    Supplies Expense 42
    Postage Expense 53
    Miscellaneous Expense 76
    Cash Over and Short 2
    Cash 173

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 8


    The Imprest Petty Cash System
    Step 4
    Steps:
    4. If the company decides that the amount of cash in the
    petty cash fund is excessive by $50, it lowers the fund
    balance as follows.
    Cash 50
    Petty Cash 50

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 9


    Physical Protection of Cash Balances
    Company should
    • Minimize the cash on hand.
    • Only have on hand petty cash and current day’s receipts.
    • Keep funds in a vault, safe, or locked cash drawer.
    • Transmit each day’s receipts to the bank as soon as
    practicable.
    • Periodically prove the balance shown in the general ledger.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 10


    Reconciliation of Bank Balances

    Schedule explaining any differences between the bank’s and


    the company’s records of cash.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 11


    Bank Reconciliation Form and Content

    ILLUSTRATION 7A.1

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 12


    Reconciliation of Bank Balances Example
    To illustrate, Nugget Mining Company’s books show a cash balance at the Denver National Bank on November 30,
    2022, of $20,502. The bank statement covering the month of November shows an ending balance of $22,190. An
    examination of Nugget’s accounting records and November bank statement identified the following reconciling items.
    1. A deposit of $3,680 that Nugget mailed November 30 does not appear on the bank statement.
    2. Checks written in November but not charged to the November bank statement are:
    Check #7327 $. 150
    #7348 4,820
    #7349 31
    3. Nugget has not yet recorded the $600 of interest collected by the bank November 20 on Sequoia Co. bonds
    held by the bank for Nugget.
    4. Bank service charges of $18 are not yet recorded on Nugget’s books.
    5. The bank returned one of Nugget’s customer’s checks for $220 with the bank statement, marked “NSF.” The
    bank treated this bad check as a disbursement.
    6. Nugget discovered that it incorrectly recorded check #7322, written in November for $131 in payment of an
    account payable, as $311.
    7. A check for Nugent Oil Co. in the amount of $175 that the bank incorrectly charged to Nugget accompanied the
    statement.

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 13


    Sample Bank Reconciliation

    ILLUSTRATION 7A.2

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 14


    Journal Entries Required to Adjust and
    Correct Books
    The required adjusting entries to adjust and correct Nugget’s books in
    early December 2022 are taken from the items in the “Balance per
    books” section and are as follows.
    Cash 600
    Interest Revenue 600
    (To record interest on Sequoia Co. bonds, collected by bank)
    Cash 180
    Accounts Payable 180
    (To correct error in recording amount of check #7322)
    Office Expense (bank charges) 18
    Cash 18
    (To record bank service charges for November)
    Accounts Receivable 220
    Cash 220
    (To record customer’s check returned NSF)

    LO 6 Copyright ©2020 John Wiley & Sons, Inc. 15


    Copyright
    Copyright © 2020 John Wiley & Sons, Inc.
    All rights reserved. Reproduction or translation of this work beyond that permitted in
    Section 117 of the 1976 United States Copyright Act without the express written
    permission of the copyright owner is unlawful. Request for further information should be
    addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may
    make back-up copies for his/her own use only and not for distribution or resale. The
    Publisher assumes no responsibility for errors, omissions, or damages, caused by the use
    of these programs or from the use of the information contained herein.

    Copyright ©2020 John Wiley & Sons, Inc. 16

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