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Question - In June, Bill commented to you that he could never figure out his bank statement, "it never matches the balance in my accounting records" he tells you. So you explain that a bank reconciliation is a tool used to balance the bank statement to the accounting books. He gives you his bank statement for June, 2014 (shown below). The general ledger shows a balance for the account cash of $19,319.00 on June 30, 2014 (detail transactions below). Bill's business only has one checking account and no other cash accounts.
Instructions: Using the bank statement and the general ledger, prepare a bank reconciliation for Bill's Lawn Care as of June 30, 2014. Record the necessary journal entries to adjust the books for the appropriate reconciling items. Start with Page 6 for the journal entries. Explanations are optional.
Name them and report the benefits and advantages of doing so. Anticipate any arguments against your idea and counter them in this letter.
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Determine which forms are necessary for Jackie O. Parks tax return - Go to the IRS Web site and download the fill-in tax forms that you will need to complete: Form 1040 and the appropriate schedules.
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