Effective Bookkeeping and Payroll

Review generally accepted accounting principles and introduce five new principles: continuing concern, conservatism, consistency, materiality, and full disclosure; refresh on debits, credits, and the accounting equation for transactions.

Apply generally accepted accounting principles (GAAP) to ensure accurate, consistent, and unbiased reporting of transactions across periods and companies, guided by the full disclosure principle.

Clarify the business entity principle, objectivity principle, and time period concept. Illustrate with owner transactions, objective evidence like invoices and timecards, and annual and quarterly reporting expectations.

Record revenue when earned, not when paid, and use accounts receivable or payable for timing. Match expenses to revenues, record purchases at cost, and keep methods consistent across periods.

Explain the materiality principle, distinguish material from immaterial items, and apply GAAP for material transactions; disclose potential liabilities, environmental issues, and continuing concern with the conservatism principle.

Explore the accounting equation: assets equal liabilities plus owner's equity and stay balanced on the balance sheet; revenues and expenses affect equity across the five account classifications.

Explore how t-accounts map debits and credits, and how assets, liabilities, and equity respond to each side, with expenses debiting and revenues crediting to reflect the accounting equation.

Explore debits and credits indicate increases and decreases in accounts, determine normal balances, and use accounting equation to know assets increase with a debit and liabilities increase with a credit.

analyze each transaction by identifying what was received or given, which accounts are affected, and how each account increases or decreases, then decide debits or credits.

Analyze a business transaction by identifying what was received or given. Classify cash or accounts receivable and record asset and revenue accounts for a computer system sale.

Analyze a cash receipt of $2,500, debit cash (an asset) and credit computer system sales (revenue) to reflect the revenue increase.

Record a sale in the journal by noting the date and description, debit cash and credit computer system sales for 2,500, then post to ledgers with a journal page cross-reference.

Explore how the full disclosure principle is applied in IBM's annual report, detailing GAAP, revenue recognition, warranties, depreciation, and contingencies.

Dissect each transaction to identify what was received and given, classify accounts such as equipment and cash, determine increases or decreases, and record debits and credits in journal practice.

Explore the GAAP principles of continuing concern, conservatism, consistency, materiality, and full disclosure, and learn how they guide transactions and provide a step-by-step process to analyze and record transactions.

Explore internal controls as a cornerstone of accounting, their key elements and how to apply them to ensure accurate financial reporting and compliance with Sarbanes-Oxley.

Analyze real-world embezzlement cases driven by weak internal controls and learn how robust controls prevent theft in bookkeeping and payroll environments.

Internal controls involve management and staff to safeguard assets, ensure accurate accounting, comply with Sarbanes-Oxley and laws, and guide operations through policies that control costs; everyone participates.

Explore the five internal control principles: establishing responsibility, segregation of duties, documentation and the cost principle, physical and electronic controls, and independent internal verification, and how Sarbanes-Oxley shapes control structure.

Assign a single person to key tasks—cash drawer, petty cash, and reconciliation—to enforce accountability and improve accuracy; limit access to cash and show ownership on orders.

Explain how segregation of duties strengthens internal controls by separating custody, record keeping, and approval across purchasing, receiving, and accounts payable, reducing collusion risk.

Use documentation to evidence that transactions occurred and support objectivity; signatures and initials assign responsibility, while authorization through approvals ensures accountability and compliance with Sarbanes-Oxley.

Explore electronic internal controls such as badge access, security checkpoints, video surveillance, garment sensors, and limiting storeroom access to prevent theft and verify employee presence through time clocks and passwords.

Independent internal verification uses audits by internal or external auditors to ensure staff follow established controls, with sign-offs and feedback when roles change or training gaps occur.

Explore preventive and detective controls that protect assets, ensure accurate financial statements, and apply segregation of duties, access controls, reconciliations, and trend analysis.

Discover the five key internal control elements—monitoring, information and communication, control activities, risk assessment, and the control environment—and learn how to design and enforce effective policies and procedures.

Explore internal controls across the organization, enforcing segregation of duties, purchase requisitions and approvals, asset removal, inventory counting, and obsolescence to protect the books.

Explore how Sarbanes-Oxley elevates CEO and CFO accountability with quarterly control certifications. Document internal controls, address deficiencies, and extend responsibility across the organization for audit readiness and stronger monitoring.

Explore how the Sarbanes-Oxley Act applies to public companies and strengthens controls. It centralizes documented processes, automates controls, and improves compliance and reporting, though costs rise.

Evaluate design and operating effectiveness of internal controls to prevent or detect material misstatements, ensuring proper follow-up, clear objectives, and performance by qualified personnel with documented evidence.

Identify key controls that prevent material errors in significant general ledger accounts, and monitor them to address risks and assertions auditors assess for materiality.

Support internal controls and audits by providing documentation, updating controls, retaining evidence for seven years, and communicating issues to the controller to ensure segregation of duties and deter fraud.

Design, implement, and verify internal controls to support audit readiness, ensuring controls are maintained and in place, with the accounting group accountable for their application.

Explore how management signs off on internal control over financial reporting under Sarbanes-Oxley, evaluated against the COSO criteria, with auditor opinions confirming effectiveness.

Learn to design and monitor a strong internal control system with preventative controls, error detection, and risk evaluation, and understand Sarbanes-Oxley documentation requirements for public companies.

Explore subsidiary ledgers and their advantages, including the subledger, alongside key special journals such as sales, cash receipts, purchases, and cash payments journals.

Learn how subsidiary ledgers provide detailed transaction records for customers and vendors, supporting general ledger balances like sales, accounts receivable, and accounts payable, and aging of receivables.

Examine the manual subsidiary ledger and accounts receivable subledger to see individual customer balances and the $4,900 control account total, and learn to post receivables daily.

Perform end-of-month reconciliations between the subledger and the control account to ensure the general ledger captures transactions, reflecting internal controls under Sarbanes-Oxley, via batch processing and automated daily posting.

Explore how accounts receivable aging in the subledger uses net 30 terms, invoice and due dates, and current to 90-day intervals to manage collections.

Explore how subledgers like accounts receivable, accounts payable, and sales subledgers support, then examine special journals, including sales, cash receipts, cash disbursements, and purchases, and their role in dividing labor.

Explore the sales journal as a specialized on-account ledger, recording debits to accounts receivable and credits to sales, with posting to the general ledger and notes on sales tax payable.

Post sales entries to accounts receivable, the sales journal, and the customer ledger; include a posting reference and memo noting the sales invoice number and sales tax payable.

Post daily to move cash quickly into the system, and summarize accounts receivable, sales, and sales tax payable into ledger accounts, typically on a monthly cycle.

Post monthly from the sales journal by totaling accounts receivable and posting to the sales account and sales tax payable.

Post month-end accounts receivable to the sales journal, debit 533,000, update the ledger balance, and record the page number for the posting reference.

Demonstrate posting to the sales journal's credit account, showing that sales increase by a credit, and record a $506 posting with the appropriate page reference and account number.

Post the sales tax payable liability (account 206) by credit to increase liabilities, in line with the accounting equation, yielding a new balance of $27.83.

Learn how special journals and control accounts consolidate totals from related accounts, such as accounts receivable and sales tax payable, enabling division of accounting tasks like posting and month-end reconciliation.

The lecture explains posting sales from separate revenue journals to customer accounts and consolidating totals into a single sales control account, with alternatives for separate control accounts by revenue type.

Explore the sales journal for computer systems and legal services, with cash sales posting and invoice references, and note that sales tax payable applies to goods but not services.

Post the sales journal total to the sales control account 400 on a monthly basis, updating the balance. Reference the posting as Computer System Sales Journal page one.

Illustrates posting monthly totals from computer sales and legal services to the sales control account via special journals, and emphasizes timely posting rather than waiting until month-end.

Record cash receipts daily by posting immediately to the cash receipts journal and depositing funds to reduce theft risk. Learn the journal's special columns and the transaction date.

We credit the customer account to reduce the receivable as the customer pays, and update the customer's individual account to reflect cash collection.

Explain what the next column in the memo section should include and why its explanation is needed in the cash receipts journal.

Determine the posting reference to the correct account when recording cash receipts in special journals.

Record a debit to cash in the cash receipts journal when cash is received, reflecting an increase in the asset.

Record the owner investment of $30,000 in the cash receipts journal and post the day's total to the general journal.

Analyze the cash receipts journal by crediting the capital account for J. Sullivan and detailing the investment memo, debits and credits, and cross-referenced account numbers to show where entries appear.

Demonstrates recording a January 4th sale in the cash receipts journal by debiting cash and crediting the sales account, with credits to capital and sales tax payable.

Review end-of-month steps for the cash receipts journal, noting daily processing, then record the fourth transaction: 400 in sales, 22 in sales tax payable, and 422 in cash.

Post cash receipts daily using the cash receipts journal, updating the accounts receivable and the general ledger with a posting reference; this case records a debit to cash.

Sum the items in the column instead of posting individually, and skip posting to the sales discounts account when none exist.

Note the posting reference for cash and sales tax payable balances, then post those amounts into the individual accounts using the account numbers below.

Learn how cash versus credit card payments are recorded in special journals, with credit cards treated as cash sales and processing fees and sales tax payable handled daily.

Explore the purchases journal, a special journal used to record purchases on account and distinguish them from cash payments. Compare its columns and purpose to the cash receipts journal.

Learn to record purchases on credit in the purchases journal, including invoice data, posting to accounts payable, and common accounts such as software, supplies, and computer systems.

Record the invoice date and supplier name in the purchases journal as part of mastering special journals for purchases.

Enter the invoice number and the invoice terms in the purchases special journal. This step involves entering the invoice number and the invoice terms.

Record purchases by posting the amounts to accounts payable on the credit side of the transaction, illustrating how special journals reflect payables.

Explain how the debit for purchases is determined, and how to handle when it's not noted here by using an area for additional accounts and naming the credit account.

Record the purchase in the purchases journal, note March 2 invoice 24 from Computers R Us, net 45 terms, 5,000 dollars credit for purchased computer systems posted to accounts payable.

Post for the day in special journals—purchases, totaling all columns for March 2 as we record a $5,000 purchase from Computer XYZ and other software and computer systems.

Illustrates a special journal purchases entry with a three-line compound entry: two debits for computer systems and legal software and a credit to accounts payable, posted to the subledger.

Explains the cash payments journal, recording cash disbursements like rent expense and software purchases with date, debit to expense accounts, and credit to cash, including check numbers.

Explore how special journals feed general ledger through automated subledgers, real time or batch processing, interface checks, and how manual journal entries act as internal controls to verify data flow.

Explore how to record cash receipts using the cash receipts journal, debiting cash and crediting sales, accounts receivable, sales discounts, unearned revenue, and capital across August transactions.

Explore how the subsidiary ledger tracks transactions for customers and vendors, showing balances owed. See how special journals support division of duties and strengthen internal controls.

Learn how to perform account reconciliation as a key internal control, identify errors, and analyze account activity with roll forward tools when reconciling is challenging.

Reconcile all balance sheet accounts monthly and verify that subsidiary records agree with the general ledger. Focus on cash, investments, accounts receivable, inventory, and major liability and equity balances.

Own and be accountable for reconciliations, ensuring accuracy and timely completion with necessary adjustments before closing the books; consult the controller and apply materiality for monthly vs quarterly reconciliations.

Reconciliation serves as a critical internal control that detects and prevents errors by aligning subsidiary and general ledger data, correcting entries, and addressing irregular adjustments.

Compare the ending general ledger balance with subsidiary records from computer systems, inventory lists, or manuals, using account statements as supporting records, to ensure the ending balance agrees.

Match general ledger and subledger balances through reconciling items and adjustments. Verify that the reconciled balances agree and note the date as month-end.

Learn how to distinguish reconciled differences from unreconciled ones, assess material versus immaterial items, and map processes to ensure timely adjustments in inventory reconciliations.

Perform a bank reconciliation by comparing the bank statement balance to the books, account for deposits in transit, outstanding checks, and adjustments for interest, bank service charges, and returned checks.

Explore reconciling a consignment inventory subledger to the trial balance and general ledger across multiple months, with trend analysis and accountability for sign-offs.

Only someone who knows the account should perform a reconciliation; train with supervision until you can verify balances, sources, subsidiary ledgers, and resolve discrepancies.

Explore how to reconcile accounts receivable by determining debit or credit balance, identifying normal entries and the system they originate from, and resolving common reconciling items.

Analyze accounts receivable reconciliation by confirming AR’s normal debit balance, linking sales entries and the subsidiary ledger to the cash receipts journal, and applying end-of-period accruals, write-offs, and credits.

Assign the reconciliation review to an accountant or knowledgeable supervisor, ensuring the reviewer understands the account and business context. Collaborate as a second set of eyes to verify accuracy.

Perform a roll forward analysis to verify activity in the subledger and troubleshoot accuracy, clarifying that it is not a reconciliation and should never be applied to the general ledger.

Verify the subledger roll forward by starting with last month’s ending balance, applying all activity, and reconciling any discrepancies to ensure the ending balance ties to the general ledger.

Analyze the accounts receivable roll-forward by starting with the prior month ending balance, adding sales, subtracting payments and write-offs, and adjusting to the general ledger.

Roll forward cash by starting with the prior month's ending balance, add receipts, subtract payments to suppliers and employees, apply adjustments, and verify the balance against the general ledger.

Complete the reconciliation when the general ledger agrees with the subledger. Also confirm the subledger activity and roll forward look reasonable, and that the account has been reviewed by another.

Learn how account reconciliation serves as a key control, who should perform and review it, and when to use a roll forward for trend analysis to assess activity.

Learn how to correct errors in accounting records by using correcting entries or reversing and reentering journal entries to ensure accurate end-of-month closing.

Correcting entries move amounts from incorrect to correct accounts or adjust values to ensure accuracy in the same period, guided by materiality, with a strict audit trail.

correct a wrong amount in the general ledger by adjusting the difference rather than reversing the entry, as shown with a $18 transposition in the utility bill journal.

Examine a misposted utilities expense entry of 375 debited and cash credited, paid by check 1001, and learn how to record the adjustment to correct the amount.

Correct a misposted amount from January 16 by crediting utility expense for $18 and debiting cash for $18 to adjust the accounts accurately.

Record a correcting entry with precise amounts for general ledger. Show the original entry was $18 too much and should have been 357; store the documentation in the closing folder.

Post an adjusting entry on January 18 to correct a $18 overstatement in utility expense, updating the utility and cash balances to 357 in this bookkeeping example.

Learn to correct a wrong amount by reversing the entry and posting a compound journal entry, debiting cash and crediting utility expense from 375 to 357, with a correction notation.

Corrects a misposted account by showing how the right amount was recorded but posted to the wrong account, switching telephone expense to utilities expense in the journal entry.

Make an adjusting entry to move the $375 from telephone expense to utility expense by crediting telephone expense to reverse the original debit and debiting utility expense.

Verify account balances after corrections by reviewing the telephone expense account, confirming a zero balance after reversing out 375 because we hit the wrong account on January 16.

Reverse the original incorrect entry with a reversing entry to maintain an audit trail, then post the correct entry and emphasize rigorous month-end closing to catch errors before reporting.

Identify and correct errors through rigorous processes by adjusting existing entries or reversing them and journalizing correcting entries. Support each correction with proper documentation.

Practice recording sales tax when collected and learn how to remit to the state and local authorities, while comparing how states assess and calculate taxes.

Sales tax, a state mandated percentage on purchases, varies by state and item; bookkeepers collect and remit it, filing required use tax forms for retail businesses.

Explore how point-of-sale registers calculate and report sales tax for daily general ledger entries. Use a $100 sale to compute $5.50 tax and a $105.50 total with a 0.055 rate.

Record a compound journal entry for a sale with tax. Debits and credits reflect $105.50 cash, $100 sales revenue, and $5.50 sales tax payable, cash, sales, and sales tax payable.

Remit collected sales tax by debiting sales tax payable and crediting cash at month end, reducing the liability, and referencing the check number.

Post taxes collected to the sales tax payable account and remit to the state at month end, noting a debit to clear the pass-through balance; frequency varies by state.

Investigate how state sales tax rules and filing differ by state, including county variations, manufacturing exemptions, contractor tax IDs, incentives for manufacturing, and farming-related exemptions.

Sales tax rates vary widely by state, with no tax in New Hampshire, Delaware, Montana, and Oregon, while California and New York exceed eight percent; bookkeepers should consult local authorities.

Examine sales tax rules and filing for New York state, detailing the local quarterly sales and use tax return, filing options, and remittance methods such as check or wire transfer.

Maintain seven years of sales records and filing documents to prepare for audits. Collect and remit online sales tax for states you do business with, navigating multi-state obligations.

Master sales tax basics, calculating and remitting to state and local authorities; navigate varying state rules for online sales, and consider a sales and use tax course for clarity.

Explore how budgeting tracks cash inflows and outflows, from revenue to expenses, and how businesses develop annual budgets and a 3–5 year strategic plan with defined roles.

Define your strategic plan by articulating a vision and mission, setting goals and initiatives, and leveraging strategic advantages to target a niche market or broader market.

Align the annual budget with the strategic plan by setting revenue, expenses, and performance objectives that support the 3 to 5 year roadmap, with third-quarter planning for next year.

Define and measure performance objectives such as on-time delivery, stock availability, quick service, and quality, while setting bookkeeping targets like timely sales tax submissions and closing the books.

Define capital and asset utilization objectives, including uptime and utilization targets, and build a comprehensive financial budget with sales, cost of goods sold, operating expenses, and profitability.

Define budgeting as a detailed annual plan that translates strategy into a portfolio of financially measurable actions, guiding resource allocation, cash use, and market-driven adjustments for the year.

Explore budgeting and strategic planning for small to medium sized companies, covering wage costs, overtime versus hiring, supplier pricing, inventory as cash, and setting trackable profitability objectives.

Explore how to structure and allocate budgets across sales, product development, selling and administrative costs, capital and depreciation, and operating plans, including direct materials, inventory, and purchasing.

Explore the types and segmentation of budgets, allocating sales to commercial teams, production to operations, and department spending, while accounting forecasts inflation and exchange rates.

Learn how materials and purchases budgets drive the inventory budget, with dependencies and assumptions that yield dollar-based outputs, while setting operating department objectives and hours of operation.

Manage the budget as a bookkeeper by maintaining the master Excel spreadsheet, inputting expenses, and analyzing baseline and historical costs for utilities, wages, payroll, and materials.

Develop the skill to manage a budget spreadsheet in Excel, including account numbers and account names. Track dollars spent, current year plans, and next year's budget.

The budget process fuels strategic planning, with budgets as the first-year objectives toward the business vision; understand roles in developing budgets and a bookkeeper's pivotal guidance on spending.

Understand the income statement distinctions for a merchandising company, including credit notes, discounts, and refunds. Learn how to record purchase discounts and refunds, and what cash on delivery means.

Explain how a merchandising business earns profit by selling goods, recording sales and cost of goods sold, tracking inventory and freight, and calculating gross profit versus operating expenses.

Explore the flow of a manufacturing income statement by tracing sales, cost of goods sold, gross profit, operating expenses, and net income.

Show how sales minus cost of goods sold yields gross profit, the first level of profitability on an income statement. Demonstrate how operating expenses, interest, and taxes reduce net income.

Learn how merchandising returns create credits recorded as credit notes in the sales journal, reducing sales with bracketed amounts and date, name, and reference numbers.

Demonstrates recording a credit note in the sales journal, showing how a customer return reduces sales and sales tax payable with a credit note entry.

Post a credit note to Paula Plenty's customer ledger, reducing balance from 350 to 300 after a 50 credit, with 900 credit limit and net 30 terms.

Record returns and credit notes in the sales returns and allowances contra revenue account to maintain accurate merchandising revenue data and enable percentage tracking.

Record a journal entry using the sales returns and allowances contra account to reflect a $50 customer return, debiting sales returns and allowances and sales tax payable, crediting accounts receivable.

Learn how sales discounts incentivize early payment and are recorded in a contra revenue account with a debit balance, helping you track cash flow and the impact on sales.

Learn how credit terms like net 30, net 45, and two over ten net 30 unlock early payment discounts, including calculating a 2% discount on $300.

record the $6 sales discount (2% discount) by debiting cash $294, debiting sales discounts $6, and crediting accounts receivable $300 to reflect early payment.

Record the payment with a 2% discount on invoice 32, credit the customer's account for $300, and note the discount in the memo while posting cash to cash receipts journal.

Learn to calculate net sales on the income statement by subtracting returns, allowances, and discounts, and track them separately to analyze sales performance and cash flow.

Explore how periodic and perpetual inventory systems track on-hand inventory and cost of goods sold, with examples from groceries, automobiles, electronics, and diamonds.

Learn the periodic inventory system, recording purchases in a purchases account and discounts and returns in contra asset accounts, then compute cost of goods sold from end-of-period counts; theft risks.

Record purchase discounts as a contra asset that offsets the purchases asset when customers or vendors pay early.

Record cash payments in the purchases journal and apply a 2% purchases discount on a $75 purchase, debiting accounts payable and purchases discounts and crediting cash for $73.50.

Record a purchase of 75 dollars under terms 2/10 net 30 and apply a 2% discount for early payment, adjusting accounts payable, purchase discounts, and cash.

Treat freight in as part of the inventory cost, debiting the freight in asset account and crediting cash to reflect freight paid and added to inventory value from purchases.

Tally end-of-period inventory, purchases, and on-hand stock for a merchandising company under a nonperpetual system to derive cost of goods sold and prepare the income statement.

Calculate cost of goods purchased for the income statement in a periodic system by starting with purchases, subtracting returns and allowances and discounts, then adding freight.

Perform a physical inventory by counting on-hand items and applying unit costs, then sum the values to determine cost of goods on hand; bookkeepers maintain cost records.

Compute cost of goods sold by starting with beginning inventory, adding cost of goods purchased to obtain cost of goods available for sale, and subtracting ending inventory; theft inflates it.

Learn to calculate net sales, cost of goods sold, gross profit, and net income on the income statement, with operating expenses and taxes or interest affecting final profit.

The perpetual inventory system uses computer monitoring to track stock, enforce reorder points, reduce theft, and auto-reorder; purchases debit inventory, sales credit inventory and record cost of goods sold.

Explore how a perpetual inventory system handles returns by crediting inventory and debiting accounts payable, and how discounts are recorded by debiting accounts payable and crediting discounts account when paying.

Record non-merchandise discounts by charging to the asset or expense account; when paying, reduce accounts payable and cash and credit office supplies, since purchase discounts apply only to inventory.

Learn how cash on delivery works, with cash payment at delivery and no credit extension, and why cod is a cash sale for sellers and a cash purchase for buyers.

Learn to prepare a merchandising income statement under a periodic inventory system, calculating net purchases, freight in, cost of goods sold, and ending inventory to reveal gross profit.

Explore how merchandising and retail differ from service businesses, focusing on inventory systems, income statements, purchase discounts, sales returns and allowances, and show how bookkeepers track, reconcile, and report inventory.

Master cash management by establishing petty cash sheet and vouchers, reconciling cash registers, and performing bank reconciliations to correct cash book and bank errors.

Define petty cash as a small cash asset kept in a safe for purchases when checks are impractical, such as stamps or weekend repairs, usually 100 to 200 dollars.

Eliminate petty cash to reduce theft risk and avoid FCPA penalties, since employees increasingly use company credit cards with expense reimbursements.

We establish the petty cash fund by writing a check and cashing it, then record a debit to petty cash and a credit to cash in the cash payments journal.

Understand how petty cash vouchers document disbursements, recording purpose, amount, disburser, and payee, and how receipts and documentation are attached to the petty cash file.

Record petty cash disbursements in a petty cash journal, also called a petty cash sheet, using columns for voucher number, expense account, and required approval for internal control.

A bookkeeper records petty cash transactions in the purchases journal and maintains the petty cash sheet, and upon replenishment restores the fund to $100 after expensing used amounts.

Review petty cash transactions in the petty cash journal, recording stamps for $10 via voucher 1 to postage expense, and a $5.28 stapler to office supplies, while segregating sales tax.

Replenish petty cash by tallying expenses—postage, office supplies, and sales tax—and posting a general journal entry to restore fund to $100. This unusual example uses $15.28 to illustrate timely replenishment.

Record a petty cash entry in general journal by debiting postage, office supplies, and sales tax, credit cash, and reimburse with a check; note check number and posting reference.

Learn to reconcile cash register discrepancies by comparing ending cash to starting cash plus daily sales, recording overages or shortages in the cash over or short account.

Define the cash float as the starting register amount, subtract it from total to obtain cash collected, compare it to cash sales, and record any overage or shortage.

Implement strict cash internal controls by securing cash in locked safes, restricting access, and giving cashiers sole responsibility for their drawers, with daily counts and deposits within three business days.

Record end-of-shift cash using count sheets and the daily cash summary; ensure accurate cash receipts journal entries, apply restrictive endorsements on checks, and involve the comptroller to reconcile bank deposits.

Demonstrates recording cash over and short in the cash receipts journal, showing how overages and shortages affect sales, cash, and the cash over and short accounts through compound journal entries.

Learn how bank reconciliation serves as a key detective and preventative control, comparing the cash balance to the bank statement and recording necessary journal entries.

Explore how bank statements capture monthly activity, including beginning and ending balances, checks, deposits, debit memos for service fees, credit memos for interest, and NSF checks.

Review a monthly bank statement, noting the prior balance, deposits, withdrawals, interest, and service charges, alongside checks and electronic funds transfers. Identify outstanding checks and timing differences for bank reconciliation.

Examine statement items like credit memos for interest and debit memos or NSF charges, and learn how to post to cash receipts, cash disbursements, cash accounts, and journal for reconciliation.

Learn how to handle bank errors by noting the issue, contacting the bank, and ensuring corrections on the bank statement, with no entry required. Then review the next bank statement.

Identify errors in the general journal and cash payments and correct them with journal entries, noting transposition and decimal errors and ensuring cash journal postings match the general ledger.

Verify bank transactions against the books, compare bank deposits with book deposits, note debit and credit memo entries, document the reconciliation in Excel, and seek supervisor approval.

Verify bank transactions by matching supporting documents with the bank statement, including canceled checks, debit memos, and credit memos; compare deposits to the cash receipts journal and check off items.

Identify outstanding checks and verify canceled checks during bank reconciliation, noting bank highlights for skipped numbers as timing differences and treating reconciling items as non adjustment timing issues.

Apply bank reconciliation steps by listing debit memos and credit memos in the cash payments journal and the cash receipts journal, then prepare the Excel-based reconciliation and necessary journal entries.

Perform bank reconciliations in Excel by separating the bank statement and book balance, adding bank errors and outstanding deposits, subtracting outstanding checks, then account for interest, charges, and non-sufficient funds.

Perform a bank reconciliation to align bank and book balances, adjust for outstanding checks and deposits in transit, and record notes, interest, and fees.

Review chapter 9 covers cash accounting, petty cash controls, journal entries and reimbursements, internal controls over cash registers, over/short cash, and bank reconciliations with corrections to the cash book.