Chesner Co. Bank Reconciliation July 31, 2044 1 Cash balance according to company's records $11.859.00 2 Adjustments: $3,306.00 3 Outstanding checks 4 Error by Chesner Co. in recording Check No. 1056 as $940 instead of $490 450.00 11,752.00 5 Note for $11,300 collected by bank, including interest 6 Deposit in transit on July 31 (7,350.00) 7 Bank service charges (19.00) 8 Total adjustments 8,139.00 9 Cash balance according to bank statement $19,998.00 A. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Let's Review section. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. B. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? Chesner Co. Bank Reconciliation July 31, 2014 1 Cash balance according to bank statement 2 Adjustments: 3 balance, July 4 5 6 7 8 Cash balance according to company's records 9 Adjustments: 10 11 12 13 14 Instructions The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $30,050. B. A deposit of $19,720, representing receipts of June 30, had been made too late to appear on the bank statement C. The bank collected $22,149 on a $20,700 note, including interest of $1,449. D. A check for $1,450 returned with the statement had been incorrectly recorded by Pala Medical Co. as $145. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check drawn for $290 had been erroneously charged by the bank as $920. F. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash? ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 131 Notes Receivable EXPENSES 141 Merchandise Inventory 510 Cost of Merchandise Sold 145 Office Supplies 515 Credit Card Expense 146 Store Supplies 516 Cash Short and Over 151 Prepaid Insurance 520 Salaries Expense 181 Land 531 Advertising Expense 191 Office Equipment 532 Delivery Expense 192 Accumulated Depreciation Office Equipment 533 Insurance Expense 193 Store Equipment 534 Office Supplies Expense 194 Accumulated Depreciation-Store Equipment 535 Rent Expense 536 Repairs Expense LIABILITIES 537 Selling Expenses 211 Accounts Payable-Skyline Supply Co. 538 Store Supplies Expense 221 Notes Payable 561 Depreciation Expense-Office Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 231 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings Pala Medical Co. Score: 28/108 Bank Reconciliation June 30, 20Y1 1 Cash balance according to bank statement $127,960.00 2 Adjustments: 3 Deposit of June 30, not recorded by bank 4 Bank error in charging check as $920 instead of $290 5 Outstanding checks 6 Total adjustments 7 8 9 Cash balance according to company's records 10 Adjustments: 11 Cash balance as per company's records 12 13 14 15 Journal Shaded cells have feedback. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 1 JOURNAL Score: 0/75 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 Points: 0/14