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PR 8-3A Bank reconciliation and entries The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: OBJ. 5 a. Checks outstanding totaled $32,700. b. A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement. c. The bank collected $26,750 on a $25,000 note, including interest of $1,750. d. A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. e. A check drawn for $490 had been erroneously charged by the bank as $940. Bank service charges for November amounted to $60. lastructions 1. Prepare a bank reconciliation. 3. If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash? 2. Journalize the necessary entries. The accounts have not been closed.

PR 8-3A Bank reconciliation and entries The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: OBJ. 5 a. Checks outstanding totaled $32,700. b. A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement. c. The bank collected $26,750 on a $25,000 note, including interest of $1,750. d. A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. e. A check drawn for $490 had been erroneously charged by the bank as $940. Bank service charges for November amounted to $60. lastructions 1. Prepare a bank reconciliation. 3. If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash? 2. Journalize the necessary entries. The accounts have not been closed.

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 7.3APR
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PR 8-3A Bank reconciliation and entries The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: V1. Adjusted balance: $114,960 оBJ.2, 3 OBJ. 5 y: , the trea- upporting ion to the a. Checks outstanding totaled $32,700. b. A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement. General Ledger e voucher office for c. The bank collected $26,750 on a $25,000 note, including interest of $1,750. d. A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. SHOW ME HOW veral post- Is to make e. A check drawn for $490 had been erroneously charged by the bank as $940. Bank service charges for November amounted to $60. pository. f the daily lastructions 1. Prepare a bank reconciliation. ne cashier. the list to 2. Journalize the necessary entries. The accounts have not been closed. 3. If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash? Luion OBJ. 5
Transcribed Image Text:PR 8-3A Bank reconciliation and entries The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: V1. Adjusted balance: $114,960 оBJ.2, 3 OBJ. 5 y: , the trea- upporting ion to the a. Checks outstanding totaled $32,700. b. A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement. General Ledger e voucher office for c. The bank collected $26,750 on a $25,000 note, including interest of $1,750. d. A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. SHOW ME HOW veral post- Is to make e. A check drawn for $490 had been erroneously charged by the bank as $940. Bank service charges for November amounted to $60. pository. f the daily lastructions 1. Prepare a bank reconciliation. ne cashier. the list to 2. Journalize the necessary entries. The accounts have not been closed. 3. If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash? Luion OBJ. 5
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