The bookkeeper at Tony Company has asked you to prepare a bank reconciliation as of February 29. The February bank statement and the February T- account for cash showed the following (summarized):

Tony Company€™s bank reconciliation at the end of January showed no outstanding checks. No deposits were in transit at the end of January, but a deposit was in transit at the end of February.
Required:
1. Prepare a bank reconciliation for February.
2. Prepare any journal entries required as a result of the bank reconciliation. Why are they necessary?
3. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
4. If the company also has $ 50 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the balance sheet at the end of February?

Transcribed Image Text:

BANK STATEMENT Checks Deposits Balance 49.400 34.400 41,400 $320 41,080 30,080 22,580 32,080 23.080 37,230 30.530 Interest eamed50 30,680 Service charge 40 30,640 Other Balance. February I February 2 February 4 February 5 February 9 February 12 February I4 February 19 February 23 February 26 February 27 February 28 #101 $15,000 S 7,000 NSF #102 #103 11.000 7.500 9.000 6.700 9,500 #104 14,150 #105 Cash (A) Feb. Balane Feb. 2 Fob. 13 Feb. 21 Feb. 28 7,000 15,000 9,5001.000 4,150 7500 7,800 9.000 6.700 1.200 Feb. 1 #101 Feb. 7 #102 Feb. 11 #103 Feb. 17 #104 Feb. 25 #105 Feb. 29 #106 Feb. 29 Balanoe 37.450