Required:1. Prepare a bank reconciliation as of February 28.2. Prepare adjusting 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 balance sheet? Valentine Investigations has the following information for its cash account:Balance, 1/31Deposits during FebruaryChecks written during February$ 1,444106,780102,341Valentine's bank statement for February contained the following information:Balance per bank, 1/31Add: February deposits$ 8,910104,950$ 113,860Less:Checks paid in FebruaryBank service chargeDebit memo (electric bill)Balance per bank, 2/28$(101,400)(50)(800)(102,250)$ 11,610A comparison of company records with the bank statement provided the following data:At 1/31At 2/28Deposits in transitOutstanding checks$2,7504,216$4,5805,157

Bank reconciliation statement is prepared with a view to reconcile the cash balance as per entity's…

Answered: Valentine Investigations has the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required:
1. Prepare a bank reconciliation as of February 28.
2. Prepare adjusting 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 balance sheet?

Valentine Investigations has the following information for its cash account:
Balance, 1/31
Deposits during February
Checks written during February
$ 1,444
106,780
102,341
Valentine's bank statement for February contained the following information:
Balance per bank, 1/31
Add: February deposits
$ 8,910
104,950
$ 113,860
Less:
Checks paid in February
Bank service charge
Debit memo (electric bill)
Balance per bank, 2/28
$(101,400)
(50)
(800)
(102,250)
$ 11,610
A comparison of company records with the bank statement provided the following data:
At 1/31
At 2/28
Deposits in transit
Outstanding checks
$2,750
4,216
$4,580
5,157

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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