Question
Valentine Investigations has the following information for its cash account: Balance, 1/31 $ 7,379 Deposits during February 106,890 Checks written during February 102,470 Valentines bank
Valentine Investigations has the following information for its cash account:
Balance, 1/31 | $ 7,379 |
Deposits during February | 106,890 |
Checks written during February | 102,470 |
Valentines bank statement for February contained the following information:
Valentine Investigations |
Bank Reconciliation Schedule |
February 28, 20XX |
1 | Balance per bank, 1/31 |
| $8,898.00 |
2 | Add: |
|
|
3 | February deposits |
| 105,400.00 |
4 |
|
| $114,298.00 |
5 | Less: |
|
|
6 | Checks paid in February | $(100,100.00) |
|
7 | Bank service charge | (50.00) |
|
8 | Debit memo (electric bill) | (700.00) | (100,850.00) |
9 | Balance per bank, 2/28 |
| $13,448.00 |
A comparison of company records with the bank statement provided the following data:
At 1/31 | At 2/28 | |
Deposits in transit | $2,700 | $4,190 |
Outstanding checks | 4,219 | 6,589 |
Required: | |
1. | Prepare a bank reconciliation as of February 28. |
2. | Prepare adjusting entries for Valentine based on the information developed in the bank reconciliation. |
3. | What is the amount of cash that should be reported on the February 28 balance sheet? |
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