The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,700. The bank statement indicated a balance of $15,810 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 $5,690. b. A deposit of $5,930, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $3,080 on a note left for collection. The face of the note was $2,920. d. A check for $500 returned with the statement had been incorrectly recorded by Stone Systems as $550. 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 $300 had been incorrectly charged by the bank as $30. f. Bank service charges for July amounted to $50. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Qutstanding checks
The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,700. The bank statement indicated a balance of $15,810 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 $5,690. b. A deposit of $5,930, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $3,080 on a note left for collection. The face of the note was $2,920. d. A check for $500 returned with the statement had been incorrectly recorded by Stone Systems as $550. 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 $300 had been incorrectly charged by the bank as $30. f. Bank service charges for July amounted to $50. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Qutstanding checks
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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