Question
The cash account for Leisure Systems at Feb 29 2012, indicated a balance of $4,720. The bank statement indicated a balance of $18,650 on Feb
The cash account for Leisure Systems at Feb 29 2012, indicated a balance of $4,720. The bank statement indicated a balance of $18,650 on Feb 29, 2012. Comparing the bank statements and accompanying cancelled checks and memos with records reveals the following reconciling items
Checks outstanding totaled $13,960
2. Deposits of $9,350 representing receipts of February 29 had been made too late to appear on the bank statement.
3. The bank had collected $ 8,560 on a note left for collection. The face of the note was $8,000.
4. Bank service charge for February amounted $50.
5. A check drawn for $930 had been incorrectly charged by the bank as $390 6. A check for $520 had been incorrectly recorded by Leisure Systems as $790.The check had been for payment for supplies from Taft Co on account (actual amount owed was in fact $790).
Instructions: 1. Prepare the bank reconciliation. 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started