? on S corp Balance sheet -need asap please

[WITAXLADY]

Ok - this is one of those I should know this- really dumb questions.. brain shut down

 

Business is cash basis, pays all her bills 12/31/20

Is cash on hand - what is in actually in her bank or in her checkbook after she subtracts the checks she just wrote 12/30/20?

(plus the savings, cash, etc.. )

[jklcpa]

in her checkbook after she subtracts the checks she just wrote 12/30/20, plus the savings, cash, etc.

[Abby Normal]

Plot twist: She actually wrote the check on 1/2 and backdated them to 12/30.

[Lee B]

1 hour ago, Abby Normal said:

Plot twist: She actually wrote the check on 1/2 and backdated them to 12/30.

You really think a client would actually do something like that

[jklcpa]

Never!  I'd be shocked, really shocked!  

[Gail in Virginia]

On 3/15/2021 at 10:56 AM, Abby Normal said:

Plot twist: She actually wrote the check on 1/2 and backdated them to 12/30.

I am not surprised, but why on earth did she ever admit to that if she was going to do it in the first place?

[Lee B]

Perhaps she had a guilty conscience and had a uncontrollable impulse to confess ? Sometimes clients do crazy stuff!

[Slippery Pencil]

3 hours ago, Gail in Virginia said:

I am not surprised, but why on earth did she ever admit to that if she was going to do it in the first place?

Pretty sure that post was a joke as it wasn't made by the OP.

[Gail in Virginia]

6 minutes ago, Slippery Pencil said:

Pretty sure that post was a joke as it wasn't made by the OP.

Did not notice the change in posters - I have had clients tell me stupid stuff and then I have to tell them something they don't want to hear.

[WITAXLADY]

aaarrgg - so you did not answer my stupid question -

is the amount of her cash what is in her back account plus her savings account per the bank on 12/31/20 - per the bank

or what she has calculated after writing  the checks out and they have not cleared???

Or what she has after balancing the bank statement

Is it literally what she should have after the expenses clear -

or what the bank says?

D

[Slippery Pencil]

6 minutes ago, WITAXLADY said:

aaarrgg - so you did not answer my stupid question -

JKL answered your question in the first reply.

The balance sheet amount is the reconciled cash balance, not what is on the bank statement.

[jasdlm]

1 hour ago, WITAXLADY said:

aaarrgg - so you did not answer my stupid question -

is the amount of her cash what is in her back account plus her savings account per the bank on 12/31/20 - per the bank

or what she has calculated after writing  the checks out and they have not cleared???

Or what she has after balancing the bank statement

Is it literally what she should have after the expenses clear -

or what the bank says?

D

If you don't use the reconciled balance (the balance after all checks she wrote/deposits she made during the year are accounted for), your balance sheet will not balance, because your expenses will affect net income but your cash will not reflect the subtraction of those expenses.