PB5-2 Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4, LO 5-5]

[The following information applies to the questions displayed below.]

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			Balance
Balance, February 1									$	57,900
February 2	#101	$	17,500							40,400
February 4				$	12,000					52,400
February 5						NSF	$	370		52,030
February 9	#102		12,500							39,530
February 12	#103		8,500							31,030
February 14					14,500					45,530
February 19	#104		10,500							35,030
February 23					16,150					51,180
February 26	#105		7,700							43,480
February 27						Interest earned		250		43,730
February 28						Service charge		45		43,685

Cash (A)

Feb. 1 Balance	57,900
Feb. 2	12,000		17,500	Feb. 1 #101
Feb. 13	14,500		12,500	Feb. 7 #102
Feb. 21	16,150		8,500	Feb. 11 #103
Feb. 28	8,800		10,500	Feb. 17 #104
			7,700	Feb. 25 #105
			1,450	Feb. 29 #106
Feb. 29 Balance	51,200

Tony Companys 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.

value: 3.33 points PB5-2 Part 1 Required: 1. Prepare a bank reconciliation for February. TONY COMPANY Bank Reconciliation At February 29 Bank Statement Company's Books Ending Balance Per Bank Statement Ending Balance Per Cash Account Additions: Additions: Deductions Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance 3.33 points PB5-2 Part 2 2. Prepare any journal entries required as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the interest of $250 received from the bank. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3.33 points PB5-2 Part 2 2. Prepare any journal entries required as a result of the bank reconciliation.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the return of the customer check of $370 due to insufficient funds. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal value 3.33 points PB5-2 Part 2 2. Prepare any journal entries required as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the service charges of $45 deducted by the bank. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal value: Required informa 3.34 points PB5-2 Part 3 3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? Balance in Cash Account References eBook &Resources Worksheet Difficulty: 2 Medium Learning Objective: 05-05 Explain the reporting of cash PB5-2 Part 3 Learning Objective: 05-04 Perform the key control of reconciling cash to bank statements. Check my work