Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Question Content Area Bank reconciliation and entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $13,220. The bank statement
Question Content Area
Bank reconciliation and entries
The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $13,220. The bank statement indicated a balance of $17,150 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
- Checks outstanding totaled $6,170.
- A deposit of $6,430, representing receipts of July 31, had been made too late to appear on the bank statement.
- The bank had collected $3,340 on a note left for collection. The face of the note was $3,170.
- A check for $700 returned with the statement had been incorrectly recorded by Stone Systems as $770. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.
- A check drawn for $900 had been incorrectly charged by the bank as $90.
- Bank service charges for July amounted to $30.
Required:
Question Content Area
1. Prepare a bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started