Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Bank reconelistion and entries The cash account for Stone Systems at July 31, 20y5, indicated a balance of 512,870 . The bank statement indicated a
Bank reconelistion and entries The cash account for Stone Systems at July 31, 20y5, indicated a balance of 512,870 . The bank statement indicated a balance of $16,370 on July 31 , 20Y5, Companing the bank statement and the accompanying canceled thecks and memos with the records reveals the following reconelling items: a. Checks outstanding totaled $5,890; b. A deposit of $6,140, representing recelpts of July 31 , had been made too late to appear on the bank statement. c. The bank had collected $3,190 on a note left for collection. The face of the note was $3,030. d. A check for $600 returned wht the statement had been incorrectly recorded by Stone Systems as 3660 . 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 $600 had been incorrectly charged by the bank as $60. f. Bank service charges for July amounted to 540 , Required 1. Prepare a bank reconcilation. 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, eave it biank 3. If a balance sheet were prepared for Stone Sybtems on July, 31, 20y5, what amount should be reported as cash
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started