Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 20

Bank reconciliation and entries
The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
A. Checks outstanding totaled $17,865.
B. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
C. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
D. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.
E. A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.
F. Bank service charges for July amounted to $80.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries.
3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?