Bank reconciliation and entries The cash account for Ambulance Systems at February 29, 2012, indicated a balance of $20,580. The bank statement indicated a balance of $24,750 on February 29, 2012. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $9,300. b. A deposit of $12,000, representing receipts of February 29, had been made too late to appear on the bank statement. c. The bank had collected $6,240 on a note left for collection. The face of the note was $6,000. d. A check for $140 returned with the statement had been incorrectly recorded by Ambulance Systems as $410. 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 $725 had been incorrectly charged by the bank as $275. f. Bank service charges for February amounted to $90. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been closed. 3. If a balance sheet were prepared for Ambulance Systems on February 29, 2012, what amount should be reported as cash?
Bank reconciliation and entries
The cash account for Ambulance Systems at February 29, 2012, indicated a balance of $20,580.
The bank statement indicated a balance of $24,750 on February 29, 2012. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
a. Checks outstanding totaled $9,300.
b. A deposit of $12,000, representing receipts of February 29, had been made too late to appear on the bank statement.
c. The bank had collected $6,240 on a note left for collection. The face of the note was $6,000.
d. A check for $140 returned with the statement had been incorrectly recorded by Ambulance Systems as $410. 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 $725 had been incorrectly charged by the bank as $275.
f. Bank service charges for February amounted to $90.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.
3. If a balance sheet were prepared for Ambulance Systems on February 29, 2012, what amount should be reported as cash?
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