FINANCIAL ADMINISTRATION

Assignment 4 – Credit Card Reconciliation

Definitions:

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.

Part 1: Reconciliation of a Credit Card Statement.

Title: Your Name, 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 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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Table 1. Receipts submitted by employee, Sonic Hedgehog, for February 2 nd to

February 6th, 2020.

Date of Issue: Feb 2, 2020

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 Feb 2, 2020

RETURN: Terminal CLASS Carrier Flight Dep Arrival

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

TO: DATE:
Victoria Feb 6, 2020

Ticket Number: 0142106352718

Date of Issue: 20200202

Ticket Particulars: NOREF/NONEND

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

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

Feb 2/20 Feb 3/20

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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Feb 2/20 Feb 3/20

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: Feb. 2, 2020 VISA: ************03333
Drop off: Feb 6, 2020
Kia Sorento
License Plate: 167 MQC
Feb 4/20
Sub-Total: 305.09
Montreal Parking Depot
Tax: 29.48
1102 Rue de Bleury
Total: 334.57
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

Feb 3/20 6:30 p.m. Feb 4/20 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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Feb 5/20
Feb 6/20
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

Feb 6/20 5:00 p.m.

Petro-Canada Gas Feb 6/20 12:30 p.m.

Total: $25.00 Damas

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

Borek Jibne $19.00

Feb 6, 2020
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: Feb 2, 2020

Check out: Feb. 6, 2020

2/2/20 Room Charge $159

3/2/20 Room Charge $159 Feb 6/20 5:15 p.m.
4/2/20 Room Charge $159
5/2/20 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
 FINANCIAL ADMINISTRATION

Table 2. Credit Card Statement for the month of February.

Billing Account Number Account Transact Merchant Gross Reconciled

Date Holder ion Date Amount

28/02/20 XXXXXXXXX03333 Sonic Hedgehog 02/02/20 Air Canada, $1708.64 x
Airfare
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 02/02/20 Air Canada, $30.00 P
Baggage Fee
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 02/02/20 Air Canada $15.12 P
On-Board
Meal Tray
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 02/02/20 Budget Rent $357.00 x
A Car
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 03/02/20 Le St-Urbain $52.89 P

28/02/20 XXXXXXXXX03333 Sonic Hedgehog 03/02/20 Montreal $18.00 P

Parking
Depot
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 04/02/20 Montreal $62.09 P
Plaza
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 04/02/20 Montreal $18.00 P
Parking
Depot
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 05/02/20 Maison $27.00 x
Publique
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 05/02/20 Montreal $18.00 P
Parking
Depot
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 06/02/20 Le Diplomate $51.95 x

28/02/20 XXXXXXXXX03333 Sonic Hedgehog 06/02/20 Montreal $18.00 P

Parking
Depot
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 06/02/20 Le Dauphin $734.58 P
Montreal
Centre-Ville
Montreal
28/02/20 XXXXXXXXX03333 Sonic Hedgehog 06/02/20 Damas $25.87 P

28/02/20 XXXXXXXXX03333 Sonic Hedgehog 06/02/20 Petro Canada $25.00 P

28/02/20 XXXXXXXXX03333 Sonic Hedgehog 07/02/20 Damas $25.87 x

Total: $3188.01

Part 2: Short Answer Questions.

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

No. there were several transactions not recorded and a couple with no record or
receipt of transaction.

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

The Air Canada, Airfare was not reconciled. The receipt showed that the ticket
price, including taxes, fees and combined taxes, totaled $708.64. The amount on
the credit card statement was $1,708.64 so Sonic was overcharged $1,000.00

The Budget Rent A Car amount on the receipt was $334.57. The amount shown on
the credit card receipt is $357.00. Sonic was overcharged $22.43.

There was no receipt for Maison Publique which was charged $27.00 on the credit
card statement.

There was no receipt for Le Dimplomate which was charged $51.95 on the credit
card statement.

There was no receipt for Damas that was charged $25.87 on 07/02/20.

There is a receipt for $3.75 at Bagel St-Henri that was not recorded or reconciled
in the credit card statement.

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

You would have to call your credit card company and dispute the charges. They
will investigate everything and reconcile and fix any mistakes that were made.

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 to keep all receipts so if there is a mistake, then there is proof of

purchase that can be shown to the company so it can be reconciled. If a receipt is
missing, there is no proof of purchase, and no disputes can be made if there are
overcharges on your credit card statement.

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5. Why is the process of reconciliation so important?

The process of reconciliation is important so that expenses and overcharges on

your credit card are kept track of.

6. How often should you reconcile your accounts?

It is best to reconcile your accounts once a month.

7. Complete the lost receipt memorandum on the next page for one of the items you
are missing a receipt for.

Note: you may make up any necessary information that is required.

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 MEMORANDUM

TO: Financial Services FROM: Brianna Daguio

Requisitions Processing Section

DATE: 08/02/20 PHONE: (905) 000-0000

RE: Original Receipts/Invoices

I hereby certify that _________Le Diplomate_______________________________________________________

(description of missing receipt in detail)

Amount $ ____$51.95________

has/have been lost or misplaced. This/These expense/s were incurred on ________06/02/20____________________

(date)

and are charged to account number ________ XXXXXXXXX03333_____________________________

These expenses have not and will not be claimed from any other source.

_____Sonic Hedgehog______________ ____Sonic

Hedgehog_____________________

PAYEE/REQUESTER SIGNATURE PRINT NAME

________ Jim Bob____________ _______Jim Bob________________________

AUTHORIZED SIGNATURE PRINT NAME

(at least one admin level higher than payee)

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8. 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.

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-
Le Dauphin Montreal Centre-Ville Hotel 105-2301-61220
Meals 105-2301-61224
Budget Rent A Car 105-2301-61555
Parking 105-2301-61555
Gas 105-2301-61555