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The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on
The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
A. | Checks outstanding totaled $33,700. |
B. | A deposit of $18,900, representing receipts of November 30, had been made too late to appear on the bank statement. |
C. | The bank collected $22,042 on a $20,600 note, including interest of $1,442. |
D. | A check for $1,600 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $160. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. |
E. | A check drawn for $680 had been erroneously charged by the bank as $860. |
F. | Bank service charges for November amounted to $40. |
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. |
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? |
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