Bank reconciliation and entriesThe cash account for Stone Systems at July 31, 20Y5, indicated a balanceof $17,750. The bank statement indicated a balance of $33,650 on July 31,20Y5. Comparing the bank statement and the accompanying canceledchecks and memos with the records reveals the following reconcilingitems: A. Checks outstanding totaled $17,865.B. A deposit of $9,150, representing receipts of July 31, had beenmade too late to appear on the bank statement.C. The bank had collected $6,095 on a note left for collection. Theface of the note was $5,750.D. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was forthe payment of an obligation to Holland Co. for the purchase ofoffice supplies on account.E. A check drawn for $1,810 had been incorrectly charged by thebank as $1,180.F. Bank service charges for July amounted to $80. Instructions1. Prepare a bank reconciliation.2. Journalize the necessary entries.3. If a balance sheet were prepared for Stone Systems on July 31,20Y5, what amount should be reported as cash?
Bank reconciliation and entries
The cash account for Stone Systems at July 31, 20Y5, indicated a balance
of $17,750. The bank statement indicated a balance of $33,650 on July 31,
20Y5. Comparing the bank statement and the accompanying canceled
checks and memos with the records reveals the following reconciling
items:
A. Checks outstanding totaled $17,865.
B. A deposit of $9,150, representing receipts of July 31, had been
made too late to appear on the bank statement.
C. The bank had collected $6,095 on a note left for collection. The
face of the note was $5,750.
D. A check for $390 returned with the statement had been
incorrectly recorded by Stone Systems as $930. The check was for
the payment of an obligation to Holland Co. for the purchase of
office supplies on account.
E. A check drawn for $1,810 had been incorrectly charged by the
bank as $1,180.
F. Bank service charges for July amounted to $80.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries.
3. If a
20Y5, what amount should be reported as cash?
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