Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi I need help with the bank reconciliation and the journal entry for this problem, if anyone could help that would be great thanks. The
Hi I need help with the bank reconciliation and the journal entry for this problem, if anyone could help that would be great thanks.
The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,775. The bank statement indicated a balance of $125,160 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items Amount Descriptions Amount Descriptions Bank error in charging check as $290 instead of $920 Bank error in charging check as $920 instead of $290 Bank service charges Check for $920 returned because of insufficient funds Deposit of November 30, not recorded by bank Error in recording check Error in recording November 30 deposit Outstanding checks Proceeds of note collected by bank, including $1,575 interest A. Checks outstanding totaled $31,540 B. A deposit of $18,000, representing receipts of November 30, had been made too late to appear on the bank statement. C. The bank collected $24,075 on a $22,500 note, including interest of $1,575 D. A check for $1,700 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $170. The check was for the payment of an obligation to ABC 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 November amounted to $70 Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct: or "Add:" will automatically appear if it is required. utstanding totaled $31,540 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of $18,000, representing recel nt. k collected $24,075 on a $22,50 of account titles. 3. If a balance sheet were prepared for Capstone Medicai Co. on November 30, 2016, what amount should be reported as cashStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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