The cash account for Capstone Medical Co at November 30, 2016, indicated a balance of $97,456 The bank statement indicated a balance of $127,960 on November 30, 2016 Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items Instructions A Checks outstanding totaled $30,050 B A deposit of $19,720, representing receipts of November 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 Capstone Medical Co as $145 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 $40 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 2 Journalize the necessary entries The accounts have not been closed Refer to the Chart of Accounts for exact wording of account titles 3 If a balance sheet were prepared for Capstone Medical Co on November 30, 2016, what amount should be reported as cash CHART OF ACCOUNTS Capstone Medical Co General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation Store Equipment LIABILITIES 211 Accounts Payable ABC Supply Co 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense Office Equipment 562 Depreciation Expense Store Equipment 590 Miscellaneous Expense 710 Interest Expense 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 $1,449 interest

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

	Instructions
A.		Checks outstanding totaled $30,050.
B.		A deposit of $19,720, representing receipts of November 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 Capstone Medical Co. as $145. 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 $40.
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.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3.	If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash?

CHART OF ACCOUNTS

Capstone Medical Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment
	LIABILITIES
211	Accounts Payable-ABC Supply Co.
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

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 $1,449 interest