In this lesson, Nick Palazzolo, CPA, navigates the complex scenario of compiling an accurate cash balance for the year-end balance sheet by delving into an illustrated cash reconciliation example for Poland Corporation. The discussion involves critiquing the inclusion or omission of various items, such as undeposited checks and those meant for future accounting periods, explaining the rationale behind each adjustment. Nick meticulously breaks down a couple of tricky situations, including a post-dated check and a bounced check, clarifying when to add back or subtract from the balance. His approach provides a concrete understanding of cash balance adjustments that ensure the financial statements reflect the correct period's information, making for a critical skill in real-world accounting.
Lesson: Cash Balance Calculation Example
In this lesson, Nick Palazzolo, CPA, navigates the complex scenario of compiling an accurate cash balance for the year-end balance sheet by delving into an illustrated cash reconciliation example for Poland Corporation. The discussion involves critiquing the inclusion or omission of various items, such as undeposited checks and those meant for future accounting periods, explaining the rationale behind each adjustment. Nick meticulously breaks down a couple of tricky situations, including a post-dated check and a bounced check, clarifying when to add back or subtract from the balance. His approach provides a concrete understanding of cash balance adjustments that ensure the financial statements reflect the correct period's information, making for a critical skill in real-world accounting.
Updated: Oct. 20, 2021 Create an account