Complete Bank Reconciliations And Financial Statement Prepar

Complete bank reconciliations and financial statement preparation for Tallpete

Complete the following in Excel: 1. Use the November and December Bank Statements along with the company’s check register to complete bank reconciliations for the Months of November and December. Assignments #11 – 13: Use the previous data from the course case to complete the following: Assignment #11 – Course Case Adjusting Entries – Adjusted Trial Balance INSTRUCTIONS - Complete the following in Excel: 1. Record and post any year-end adjusting entries Tallpete may need to complete. Assume the following cost information for depreciating the assets: 2. Prepare an adjusted Trial Balance. 3. Verify the cash account balance at the end of the year equals the bank reconciliation. Assignment #12 – Course Case Financial Statements INSTRUCTIONS - Complete the following in Excel: 1. Prepare December 31st Financial Statements for Tallpete. Assignment #13 – Course Case Closing Entries – Post-Closing Trial Balance INSTRUCTIONS - Complete the following in Excel: 1. Record and post Tallpete’s year-end closing entries. 2. Prepare a post-closing trial balance.

Paper For Above instruction

In this analysis, we undertake a comprehensive financial review of Tallpete Lawn Co. by performing bank reconciliations, adjusting entries, preparation of financial statements, and closing procedures as outlined in the course case. These steps are fundamental for ensuring the accuracy of financial records, compliance with accounting standards, and providing managerial insights that guide strategic decisions.

The initial task involves reconciling the bank statements for November and December with Tallpete's check register, which is crucial to verify the consistency between the company's internal records and the bank’s records. As indicated in the provided bank statement details, Tallpete’s bank statements exhibit various deposits, withdrawals, and checks that need to be matched with those recorded in the company’s register. Discrepancies such as outstanding checks or deposits in transit are identified during this process. For example, the bank statement for December shows a beginning balance of $14,722, with both deposits totaling $13,938 and withdrawals totaling $14,101, providing the foundation for reconciliation.

Performing bank reconciliations involves adjusting the book balance for items such as outstanding checks, deposits in transit, bank errors, or recording errors. For Tallpete, adjustments include reconciling deposit discrepancies and outstanding checks that haven't cleared the bank. Once this process is completed, the reconciled bank balance should match the adjusted company ledger balance, which is a key step before closing the books for the period.

Next, partial due to the fiscal year-end, recording the necessary adjusting entries is critical. Adjustments for depreciation expenses, accrued expenses, prepaid expenses, and amortizations are typically necessary to reflect a true and fair view of the company's financial position. For Tallpete, assumptions about depreciation costs based on asset cost information are made, ensuring consistent application of depreciation methods across reporting periods. These entries might include adjusting for depreciation on equipment, vehicles, or other fixed assets, as well as accruing any unpaid expenses or recognizing revenues earned but not yet billed.

Once the adjusting entries are recorded, an adjusted trial balance is prepared. This step consolidates all ledger balances after adjustments, ensuring the ledger is up-to-date before financial statements are prepared. The accuracy of the cash account balance determined at this stage is verified by checking it against the bank reconciliation, thus reconciling the company's internal records with external bank statements.

The subsequent phase involves preparing the financial statements as of December 31st, including the income statement, balance sheet, and statement of cash flows. These statements provide a snapshot of Tallpete's financial health, profitability, and cash position. Key components include reporting revenues, expenses, assets, liabilities, and equity, as well as analyzing cash flows from operating, investing, and financing activities, which demonstrate the company’s liquidity and operational efficiency.

Finally, year-end closing entries are recorded and posted, which serve to reset temporary accounts such as revenues and expenses to zero, transferring their balances to retained earnings or owners’ equity. This process ensures that each accounting period starts afresh, maintaining the integrity and clarity of financial data. Subsequently, a post-closing trial balance confirms that all temporary accounts have been closed correctly and that the ledger balances are ready for the next financial period.

In conclusion, these procedures—bank reconciliation, adjusting entries, financial statement preparation, and closing—are essential components of proper accounting practice. They ensure that Tallpete’s financial statements accurately reflect the company’s financial position and performance, thereby facilitating informed managerial decisions, investor confidence, and regulatory compliance.

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