Please refer to the following bank reconciliation: No journal entries are required for the reconciling items on the bank side because:

Question

Please refer to the following bank reconciliation:  No journal entries are required for the reconciling items on the bank side because:

Quizplus · Accepted Answer

The reconciling items on the bank side have already been recorded in the company ledger, so no further journal entries are required. Option B is not a valid reason because the adjusted balances on both sides may not necessarily be the same amounts after the reconciling items have been accounted for. Option C is not relevant as materiality is not a determining factor in whether or not journal entries are required. Option D is also not a valid reason as the reconciling items may not have already been included in the bank balance at June 30.

Please Refer to the Following Bank Reconciliation: No Journal