The cash account for Stone Systems at July 31 indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:Checks outstanding totaled $17,865.A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.Bank service charges for July amounted to $80.Required: Bank Reconciliation and EntriesThe cash account for Stone Systems at July 31 indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31. Comparing the bank statement and the accompanying canceled checks and menmos with the records reveals the followingreconciling items:a. Checks outstanding totaled $17,865.b. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.c. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.d. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. 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 $1,810 had been incorrectly charged by the bank as $1,180.f. Bank service charges for July amounted to $80.Required:1. Prepare a bank reconciliation.Stone SystemsBank ReconciliationJuly 31Cash balance according to bank statement$4$1Adjusted balanceCash balance according to company's records$Adjusted balance2. 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.July 31July 313. If a balance sheet is prepared for Stone Systems on July 31, what amount should be reported as cash?

Solution: (1). Stone systems Bank Reconciliation July 31, 2015 Cash balance according to…

Answered: The cash account for Stone Systems at…

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

See similar textbooks

Related questions

Concept explainers

Question

The cash account for Stone Systems at July 31 indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

Checks outstanding totaled $17,865.
A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.
A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.
Bank service charges for July amounted to $80.

Required:

Bank Reconciliation and Entries
The cash account for Stone Systems at July 31 indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31. Comparing the bank statement and the accompanying canceled checks and menmos with the records reveals the following
reconciling items:
a. Checks outstanding totaled $17,865.
b. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
c. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
d. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. 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 $1,810 had been incorrectly charged by the bank as $1,180.
f. Bank service charges for July amounted to $80.
Required:
1. Prepare a bank reconciliation.
Stone Systems
Bank Reconciliation
July 31
Cash balance according to bank statement
$4
$1
Adjusted balance
Cash balance according to company's records
$
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.
July 31
July 31
3. If a balance sheet is prepared for Stone Systems on July 31, what amount should be reported as cash?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions