PB5-2 Preparing a Bank Reconciliation and Journal Entries and Reporting Cash LO 5-40 ,5-50 The bookkeeper at Tony Company has asked you to prepare a bank reconciliation as of February 29. The February bank statement and the February T-account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Other #101 $15,000 $7,000 Balance $49,400 34,400 41,400 41,080 30,080 22,580 32.080 NSF $320 #102 11,000 #103 Balance, February 1 February 2 February 4 February 5 February 9 February 12 February 14 February 19 February 23 February 26 February 27 February 28 7.500 9,500 #104 9.000 23,080 14,150 37.230 #105 6.700 30,530 150 30.680 Interest earned Service charge 40 30,640 Cash (A) Feb. 1 Balance 49,400 Feb. 2 7,000 15,000 Feb. 1 #101 Feb. 13 9.500 11,000 Feb. 7 #102 Feb. 21 14,150 7,500 Feb. 11 #103 Feb. 28 7,800 9,000 Feb. 17 #104 6.700 Feb. 25 #105 1,200 Feb. 29 #106 Feb. 29 Balance 37.450 Page 252 Tony Company's bank reconciliation at the end of January showed no outstanding checks. No deposits were in transit at the end of January, but a deposit was in transit at the end of February Required: 1. Prepare a bank reconciliation for February. 2. Prepare any journal entries required as a result of the bank reconciliation. Why are they necessary? 3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? 4. If the company also has $50 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of February