Bank Reconciliation Valentine Investigations has the following information for its cash account: Balance, 1/31 $7,444 Deposits during February 106,780 Cheques written during February 102,341 Valentine's bank statement for February contained the following information: Balance per bank, 1/31 $8,910 Add: February deposits 104,950 113,860 Less: Cheques paid in February $(101,400) Bank service charge (50) Debit memo (electric bill) (800) (102,250) Balance per bank, 2/28 $11,610 A comparison of company records with the bank statement provided the following data: At 1/31 At 2/28 Deposits in transit $2,750 $4,580 Outstanding cheques 4,216 5,157 Required: 1. Prepare a bank reconciliation as of February 28. 2. Prepare journal entries for Valentine based on the information developed in the bank reconciliation. 3. What is the amount of cash that should be reported on the February 28 statement of financial position?
Bank Reconciliation Valentine Investigations has the following information for its cash account: Balance, 1/31 $7,444 Deposits during February 106,780 Cheques written during February 102,341 Valentine's bank statement for February contained the following information: Balance per bank, 1/31 $8,910 Add: February deposits 104,950 113,860 Less: Cheques paid in February $(101,400) Bank service charge (50) Debit memo (electric bill) (800) (102,250) Balance per bank, 2/28 $11,610 A comparison of company records with the bank statement provided the following data: At 1/31 At 2/28 Deposits in transit $2,750 $4,580 Outstanding cheques 4,216 5,157 Required: 1. Prepare a bank reconciliation as of February 28. 2. Prepare journal entries for Valentine based on the information developed in the bank reconciliation. 3. What is the amount of cash that should be reported on the February 28 statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bank Reconciliation
Valentine Investigations has the following information for its cash account:
| Balance, 1/31 | $7,444 |
| Deposits during February | 106,780 |
| Cheques written during February | 102,341 |
Valentine's bank statement for February contained the following information:
| Balance per bank, 1/31 | $8,910 | ||
| Add: February deposits | 104,950 | ||
| 113,860 | |||
| Less: | |||
| Cheques paid in February | $(101,400) | ||
| Bank service charge | (50) | ||
| Debit memo (electric bill) | (800) | (102,250) | |
| Balance per bank, 2/28 | $11,610 |
A comparison of company records with the bank statement provided the following data:
| At 1/31 | At 2/28 | |||
| Deposits in transit | $2,750 | $4,580 | ||
| Outstanding cheques | 4,216 | 5,157 |
Required:
1. Prepare a bank reconciliation as of February 28.
2. Prepare
3. What is the amount of cash that should be reported on the February 28 statement of financial position?
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