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Bank reconciliation and entries The cash account for Stone Systems at July 31, 2015, indicated a balance of $12,860. The bank statement indicated a balance
Bank reconciliation and entries The cash account for Stone Systems at July 31, 2015, indicated a balance of $12,860. The bank statement indicated a balance of $16,630 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 $5,990, b. A deposit of $6,240, representing receipts of July 31, had been made too late to appear on the bank statement, c. The bank had collected $3,240 on a note left for collection. The face of the note was $3,080. d. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. 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 $800 had been incorrectly charged by the bank as $80. f Bank service charges for July amounted to $20. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Line Item Description Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding checks. Deduct Bank error in charging check as $80 instead of $800 Total deductions V Adjusted balance Cash balance according to company's records Adjustments Add: Note collected by bank, including $160 interest Add: Error in recording check by Stone Systems Total additions Deduct. Bank service charges Adjusted balance Amount 5,990 X 720 X 3,230 3,230 X 70 X Amount 16,630 X 6.240 X 6,590 X 16,170 X 16,630 X 3,300 X 55 X 16,170 X
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