Bank reconciliation and entries The cash account for Stone Systems at July 31,20Y5, indicated a...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Bank reconciliation and entries The cash account for Stone Systems at July 31,20Y5, indicated a balance of $7,950. The bank statement indicated a balance of $10,170 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 $3,660. b. A deposit of $3,810, representing receipts of July 31 , had been made too late to appear on the bank statement. c. The bank had collected $1,980 on a note left for collection. The face of the note was $1,880. d. A check for $600 returned with the statement had been incorrectly recorded by Stone Systems as $660. 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 $400 had been incorrectly charged by the bank as $40. f. Bank service charges for July amounted to $30. Required: 1. Prepare a bank reconciliation. 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. 3. If a balance sheet were prepared for Stone Systems on July 31,20Y5, what amount should be reported as cash? $
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Bank reconciliation and entries The cash account for Stone Systems at July 31,20Y5, indicated a balance of $7,950. The bank statement indicated a balance of $10,170 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 $3,660. b. A deposit of $3,810, representing receipts of July 31 , had been made too late to appear on the bank statement. c. The bank had collected $1,980 on a note left for collection. The face of the note was $1,880. d. A check for $600 returned with the statement had been incorrectly recorded by Stone Systems as $660. 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 $400 had been incorrectly charged by the bank as $40. f. Bank service charges for July amounted to $30. Required: 1. Prepare a bank reconciliation. 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. 3. If a balance sheet were prepared for Stone Systems on July 31,20Y5, what amount should be reported as cash? $ 