Stone Systems Bank Reconciliation July 31, 2015 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Adjustments: Total additions Adjusted balance Amount Amount 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. 2015 July 31 July 31 Feedback ►Check My Work 3. If a balance sheet were prepared for Stone Systems on July 31, 2015, what amount should be reported as cash? 13,195 X
Bank reconciliation and entries
The cash account for Stone Systems at July 31, 20V5, indicated a balance of $12,385. The bank statement indicated a balance of $15,79C on July 31, 20V5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
a. Checks outstanding totaled $5,680.
b. A deposit of $5,920, representing receipts of July 31, hed been made toc late tc appear on the bank statement.
c. The bank had allected 53,080 on a note left for collection. The Ece of the note was 52,920.
d. A check for $700 returned with the staternent had been incorrectly recorded by Stone System,s as $770. The check was for the payment of an obligation to Holland Co. for the purchase of 0Fjce supplies on account,
e. A check drawn for SSCC had been incorrectly charged by the bank as $60.
f. Sank service charges for July amounted to $45.
Required:
1. Prepare Sank reconciliation.
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