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Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,380. The bank statement indicated a balance of $10,770 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 $3,880. b. A deposit of $4,040, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $1,990. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 $500 had been incorrectly charged by the bank as $50. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 $ Cash balance according to bank statement 2$ Total deductions Adjusted balance 2$ Cash balance according to company's records Adjustments: 2$

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,380. The bank statement indicated a balance of $10,770 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 $3,880. b. A deposit of $4,040, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $1,990. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 $500 had been incorrectly charged by the bank as $50. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 $ Cash balance according to bank statement 2$ Total deductions Adjusted balance 2$ Cash balance according to company's records Adjustments: 2$

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.18EX
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3/3/21, 9:49 AM Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,380. The bank statement indicated a balance of $10,770 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 $3,880. b. A deposit of $4,040, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $1,990. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 $500 had been incorrectly charged by the bank as $50. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 $ Cash balance according to bank statement 2$ Total deductions 2$ Adjusted balance 2$ Cash balance according to company's records Adjustments: $ https://cxp.cengage.com/activityservice/run/html5/handler.jsp?id%395...cengagenow.com&xdm_c=activityService_activity_1614793757142&xdm_p=1 Page 1 of 2
Transcribed Image Text:3/3/21, 9:49 AM Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,380. The bank statement indicated a balance of $10,770 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 $3,880. b. A deposit of $4,040, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $1,990. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 $500 had been incorrectly charged by the bank as $50. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 $ Cash balance according to bank statement 2$ Total deductions 2$ Adjusted balance 2$ Cash balance according to company's records Adjustments: $ https://cxp.cengage.com/activityservice/run/html5/handler.jsp?id%395...cengagenow.com&xdm_c=activityService_activity_1614793757142&xdm_p=1 Page 1 of 2
3/3/21, 9:51 AM Total additions - $ Adjusted balance 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. 20Y5 July 31 July 31 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash? $ %24
Transcribed Image Text:3/3/21, 9:51 AM Total additions - $ Adjusted balance 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. 20Y5 July 31 July 31 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash? $ %24
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