Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 2015, indicated a balance of $11,530. The bank statement indicated a balance of $14,400 on July 31, 2015. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $5,180. b. A deposit of $5,400, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,810 on a note left for collection. The face of the note was $2,660. d. A check for $500 returned with the statement had been incorrectly recorded by Stone Systems as $550. 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 $300 had been incorrectly charged by the bank as $30. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 2015 Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding checks Deduct Bank error in charging check as $30 instead of $300 Total deductions Adjusted balance Cash balance according to company's records Adjustments: Add: Note collected by bank, including $150 interest Add: Error in recording check by Stone Systems Check My Work 3 more Check My Work uses remaining -270 14,400 5,400 Previous Next