Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $10,000. The bank statement indicated a balance of $13,090 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $4,710. A deposit of $4,910, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $2,550 on a note left for collection. The face of the note was $2,420. 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. A check drawn for $800 had been incorrectly charged by the bank as $80. Bank service charges for July amounted to $20. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement $fill in the blank 1110f1019fbc05f_1 Add: Deposit in transit on July 31 fill in the blank 1110f1019fbc05f_3 Deduct: Outstanding checks $fill in the blank 1110f1019fbc05f_5 Deduct: Bank error in charging check as $80 instead of $800 fill in the blank 1110f1019fbc05f_7 Total deductions fill in the blank 1110f1019fbc05f_8 Adjusted balance $fill in the blank 1110f1019fbc05f_9 Cash balance according to company's records $fill in the blank 1110f1019fbc05f_10 Adjustments: $fill in the blank 1110f1019fbc05f_12 fill in the blank 1110f1019fbc05f_14 Total additions fill in the blank 1110f1019fbc05f_15 fill in the blank 1110f1019fbc05f_17 Adjusted balance $fill in the blank 1110f1019fbc05f_18 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 fill in the blank ddfa4203bfeaf90_2 fill in the blank ddfa4203bfeaf90_3 fill in the blank ddfa4203bfeaf90_5 fill in the blank ddfa4203bfeaf90_6 fill in the blank ddfa4203bfeaf90_8 fill in the blank ddfa4203bfeaf90_9 fill in the blank ddfa4203bfeaf90_11 fill in the blank ddfa4203bfeaf90_12 July 31 fill in the blank ddfa4203bfeaf90_14 fill in the blank ddfa4203bfeaf90_15 fill in the blank ddfa4203bfeaf90_17 fill in the blank ddfa4203bfeaf90_18 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $10,000. The bank statement indicated a balance of $13,090 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $4,710. A deposit of $4,910, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $2,550 on a note left for collection. The face of the note was $2,420. 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. A check drawn for $800 had been incorrectly charged by the bank as $80. Bank service charges for July amounted to $20. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement $fill in the blank 1110f1019fbc05f_1 Add: Deposit in transit on July 31 fill in the blank 1110f1019fbc05f_3 Deduct: Outstanding checks $fill in the blank 1110f1019fbc05f_5 Deduct: Bank error in charging check as $80 instead of $800 fill in the blank 1110f1019fbc05f_7 Total deductions fill in the blank 1110f1019fbc05f_8 Adjusted balance $fill in the blank 1110f1019fbc05f_9 Cash balance according to company's records $fill in the blank 1110f1019fbc05f_10 Adjustments: $fill in the blank 1110f1019fbc05f_12 fill in the blank 1110f1019fbc05f_14 Total additions fill in the blank 1110f1019fbc05f_15 fill in the blank 1110f1019fbc05f_17 Adjusted balance $fill in the blank 1110f1019fbc05f_18 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 fill in the blank ddfa4203bfeaf90_2 fill in the blank ddfa4203bfeaf90_3 fill in the blank ddfa4203bfeaf90_5 fill in the blank ddfa4203bfeaf90_6 fill in the blank ddfa4203bfeaf90_8 fill in the blank ddfa4203bfeaf90_9 fill in the blank ddfa4203bfeaf90_11 fill in the blank ddfa4203bfeaf90_12 July 31 fill in the blank ddfa4203bfeaf90_14 fill in the blank ddfa4203bfeaf90_15 fill in the blank ddfa4203bfeaf90_17 fill in the blank ddfa4203bfeaf90_18 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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Question

Bank Reconciliation and Entries

The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $10,000. The bank statement indicated a balance of $13,090 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

Checks outstanding totaled $4,710.
A deposit of $4,910, representing receipts of July 31, had been made too late to appear on the bank statement.
The bank had collected $2,550 on a note left for collection. The face of the note was $2,420.
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.
A check drawn for $800 had been incorrectly charged by the bank as $80.
Bank service charges for July amounted to $20.

Required:

1. Prepare a bank reconciliation.

Stone Systems
Bank Reconciliation
July 31, 20Y5
Cash balance according to bank statement		$fill in the blank 1110f1019fbc05f_1
Add: Deposit in transit on July 31		fill in the blank 1110f1019fbc05f_3
Deduct: Outstanding checks	$fill in the blank 1110f1019fbc05f_5
Deduct: Bank error in charging check as $80 instead of $800	fill in the blank 1110f1019fbc05f_7
Total deductions		fill in the blank 1110f1019fbc05f_8
Adjusted balance		$fill in the blank 1110f1019fbc05f_9
Cash balance according to company's records		$fill in the blank 1110f1019fbc05f_10
Adjustments:
	$fill in the blank 1110f1019fbc05f_12
	fill in the blank 1110f1019fbc05f_14
Total additions		fill in the blank 1110f1019fbc05f_15
		fill in the blank 1110f1019fbc05f_17
Adjusted balance		$fill in the blank 1110f1019fbc05f_18

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	fill in the blank ddfa4203bfeaf90_2	fill in the blank ddfa4203bfeaf90_3
	fill in the blank ddfa4203bfeaf90_5	fill in the blank ddfa4203bfeaf90_6
	fill in the blank ddfa4203bfeaf90_8	fill in the blank ddfa4203bfeaf90_9
	fill in the blank ddfa4203bfeaf90_11	fill in the blank ddfa4203bfeaf90_12
July 31	fill in the blank ddfa4203bfeaf90_14	fill in the blank ddfa4203bfeaf90_15
	fill in the blank ddfa4203bfeaf90_17	fill in the blank ddfa4203bfeaf90_18

3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

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