FINC 1301 Due March 3rd, 2021

Simulation 4 – Credit Card Reconciliation

Due Date: Due March 3rd, 2021 at 11:59 pm
Grading: 10% of your final grade

A credit card statement is a financial document that provides a detailed list of all the
expenses incurred using a credit card.

Reconciliation refers to the process of comparing transactions you have recorded for a
financial account (or it could be receipts you retained for each transaction you made)
against a monthly statement from a bank, credit card, or other financial institution.

Upon completion of this activity, you will be able to:

 Use a chart of accounts.

 Perform credit card reconciliations.

Part 1: Reconciliation of a Credit Card Statement.

Title: Emily Guenette, Administrative Assistant

Location: Victoria, British Columbia

Company: Evolution Human Resource Services

Department: Marketing

Instructions: Reconcile the list of expenses in Table 1 with the credit card statement in
Table 2 by placing a check mark or “X” in the reconciled column in Table 2 and answer
the questions that follow.

Daily Meal Allowances (excluding taxes): Breakfast $20; Lunch $30; Supper $50.

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 FINC 1301 Due March 3rd, 2021
Table 1. Receipts submitted by employee, Sonic Hedgehog, for May 2 nd to May 6th,
2021.

Date of Issue: May 2, 2021

Booking: 21622112 Airline Booking Reference: RYGU6E

GUEST: Sonic Hedgehog

Air Canada – Return Air Fare Economy

Departure: Terminal CLASS Carrier Flight Dep Arrival

FROM: Victoria Seat 16E Y Air Canada AC302 11:30 19:13

TO: DATE:
Montreal, QC May 2, 2021

RETURN: Terminal CLASS Carrier Flight Dep Arrival

FROM: Montreal, QC Seat 17F Y Air Canada AC309 18:30 20:49

TO: DATE:
Victoria May 6, 2021

Ticket Number: 0142106352718

Date of Issue: 20210502

Ticket Particulars: NO REF/NON-END

Ticket Price $1,708.64 (Air Taxes & Fees, Combined Taxes) in Canadian dollars

Paid by Visa *************03333

May 2/21 May 3/21

Air Canada Montreal Parking Depot

On-Board Meal Service
1102 Rue de Bleury
Meal Tray $13.50 Montreal, QC

Tax (12%): $ 1.62 Parking

$18.00
Total: $15.12
VISA: ************03333
VISA ************03333

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May 2/21 May 3/21

Budget Rent A Car Bagel St-Henri

Booking Number: 20-757 4354 Saint-Antoine W

Montreal, QC
Confirmation Number: 8-7892
Bagel and Coffee special
Name: Sonic Hedgehog $3.75
Pick up: May 2, 2021 VISA: ************03333
Drop off: May 6, 2021
Kia Sorento
License Plate: 167 MQC
May 4/21
Sub-Total: 315.93
Montreal Parking Depot
Tax: 41.07
1102 Rue de Bleury
Total: 357.00
Montreal, QC
*Note: Car must be returned with a full tank of
Parking
gas or a $40 fee will be added to your total.
$18.00
VISA: *********0333
VISA: ************03333

May 3/21 6:30 p.m. May 4/21 7:00 p.m.

Le St-Urbain Montreal Plaza

96 Rue Fleury O 6280 Rue St-Hubert
Montreal, QC Montreal, QC

Saumon sauvage, haricots verts, seigle, Salade Foodchain $15.00

radis, crème fraiche a l’ortie
Canelloni $25.00
$32.00
Alsace, Kritt Pinot Blanc $14.00
Chardonnay $14.00
Sub-Total: $54.00
Sub- Total: 46.00
GST: 2.70
GST: 2.30
QST: 5.39
QST: 4.59
Total: 62.09
Total: 52.89
VISA: ************03333
VISA **************03333

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May 5/21
May 6/21
Montreal Parking Depot
Montreal Parking Depot
1102 Rue de Bleury
Montreal, QC 1102 Rue de Bleury
Montreal, QC
Parking $18.00
Parking $18.00
VISA: ************03333
VISA: ************03333

May 6/21 5:00 p.m.

Petro-Canada Gas May 6/21 12:30 p.m.

Total: $25.00 Damas

1201 Avenue Van Horne, Outremont
VISA: ************03333
Montreal, QC

Borek Jibne $19.00

May 6, 2021
Tea $ 3.50
Le Dauphin Montreal Centre-Ville

Guest: Sonic Hedgehog

Sub-Total: $22.50
Regular Room - Room No: 458 GST: 1.13
QST: 2.24
Booking Number: LD72389 Total: 25.87
Confirmation Number: 20-784638
VISA: ************03333
Check in: May 2, 2021

Check out: May 6, 2021

2/5/20 Room Charge $159

3/5/20 Room Charge $159 May 2/21 5:15 p.m.
4/5/20 Room Charge $159
5/5/20 Room Charge $159 Air Canada
Baggage Handling Fee
Sub-Total: $636.00
Hotel Tax (3%): $ 19.08
GST (5%): $31.80
Total: $30.00
TVQ (7.5%): $47.70

Total: $734.58 VISA: ************03333 4

VISA ***********03333
 FINC 1301 Due March 3rd, 2021
Table 2. Credit Card Statement for the month of May.

Reconciled By: Emily Company: Location: Department: Date Completed: May 31,
Guenette Evolution Victoria, Marketing 2021
Human British
Resource Columbia
Services
Billing Account Number Account Transaction Merchant Gross Reconciled
Date Holder Date Amount

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 02/05/21 Air Canada, $1,708.64
Airfare

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 02/05/21 Air Canada, $30.00
Baggage Fee

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 02/05/21 Air Canada On- $15.12
Board Meal
Tray

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 02/05/21 Budget Rent A $357.00
Car

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 03/05/21 Le St-Urbain $52.89

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 03/05/21 Montreal $18.00
Parking Depot

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 04/05/21 Montreal Plaza $62.09

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 04/05/21 Montreal $18.00
Parking Depot

31/05/21 XXXXXXXXX03333 Sonic Hedgehog 05/05/21 Maison $27.00

Publique X
✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 05/05/21 Montreal $18.00
Parking Depot

31/05/21 XXXXXXXXX03333 Sonic Hedgehog 06/05/21 Le Diplomate $51.95

X
✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 06/05/21 Montreal $18.00
Parking Depot

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 06/05/21 Le Dauphin $734.58
Montreal
Centre-Ville
Montreal

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 06/05/21 Damas $25.87

✓
31/05/21 XXXXXXXXX03333 Sonic Hedgehog 06/05/21 Petro Canada $25.00

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 FINC 1301 Due March 3rd, 2021
Reconciled By: Emily Company: Location: Department: Date Completed: May 31,
Guenette Evolution Victoria, Marketing 2021
Human British
Resource Columbia
Services
Billing Account Number Account Transaction Merchant Gross Reconciled
Date Holder Date Amount
Total: 0

Part 2: Short Answer Questions

1. Were all the credit card transactions reconciled? Yes or No?

No, all credit card transactions were not reconciled.

2. If you answered no to question one, which items were not reconciled? Why?

There is a $27.00 charge to Maison Publique on 05/05/21, and a $51.95 charge to

Le Diplomate on 06/05/21. Both are not reconciled, as there are no existing
receipts for these transactions.

3. What happens if you are over charged by your credit card company? How would you
rectify this situation?

If you are overcharged by your credit card company, there is likely a transaction
on your statement that is not reconciled. To rectify this, pinpoint the

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aforementioned transaction, and contact the merchant that processed this
transaction.

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4. Why is it important to keep a record of all your credit card transactions or keep
copies of all the expense receipts? What happens if a receipt is missing?

It is important as an expense report needs to be completed at the end of each

month, and these receipts are necessary as proof of your transactions. If a
receipt is missing, a Declaration of Authenticity must be completed.

5. Why is the process of reconciliation so important?

The process of reconciliation is important because it allows you to verify that the
amounts on your credit card receipts match the amounts on your credit card
statement. By doing this, you can confirm every transaction, and if there are any
over/under charges, you will notice and fix the issue.

6. How often should you reconcile your accounts?

You should reconcile your accounts every time you receive a credit card
statement, which translates to once a month.

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 FINC 1301 Due March 3rd, 2021
7. Using the Chart of Accounts in Table 3, indicate the full account number (Office,
Department, and Expense codes) you would charge each item to in Table 4.

REFER TO THE FIRST PAGE FOR THIS INFORMATION

Table 3. Chart of Accounts (COA)

Office Office Departmen Department Type of Expense Expense

Location Code t Codes Codes
s
St. John 101 Sales 2300 Accommodations 61220
Charlottetow
n 102 Marketing 2301 Meals 61224
Halifax 103 Finance 2602 Memberships 61330
Travel (Plane, Car,
Fredericton 104 Facilities 2632 Bus) 61555
Quebec City 105 Sales 2300 Honorariums 61080
Toronto 106 Promotions 71250
Winnipeg 107 Office Supplies 71149
Professional
Regina 108 Development 71150
Edmonton 109 Membership & Dues 71425
Victoria 110 Telecommunication 72010
Other/Miscellaneous 71110

Table 4. Expenses with Chart of Account Codes

Merchant Full Account Code

Air Canada, Plane Ticket 110-2301-61555
Air Canada Baggage Fees 110-2301-61555
Le Dauphin Montreal Centre-Ville Hotel 110-2301-61220
Meals 110-2301-61224
Budget Rent A Car 110-2301-61555
Parking 110-2301-71110
Gas 110-2301-71110