I need assistance with a bank reconciliation, to check my work. I have included
ID: 2490805 • Letter: I
Question
I need assistance with a bank reconciliation, to check my work. I have included the instructions and the answer area. Thanks.
The cash account for Stone Systems at July 31, 2016, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
Bank service charges for July amounted to $80.
STONE SYSTEMS
Bank Reconciliation
July 31, 2016
1
Cash balance according to bank statement
2
3
4
5
6
Adjusted balance
7
8
Cash balance according to company’s records
9
10
11
12
13
Adjusted balance
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.
STONE SYSTEMS
Bank Reconciliation
July 31, 2016
1
Cash balance according to bank statement
2
3
4
5
6
Adjusted balance
7
8
Cash balance according to company’s records
9
10
11
12
13
Adjusted balance
Explanation / Answer
STONE SYSTEMS Bank Reconciliation 31-Jul-16 Particulars Amount 1 Cash balance according to bank statement 33650 2 Check outstanding -17865 3 Receipts 9150 4 bank note collection -6095 5 Check shortly drawn -630 6 Check returned -540 7 Bank service charges 80 8 Adjusted balance 17750 1 Cash balance according to company’s records 17750 2 Check outstanding 17865 3 Receipts -9150 4 bank note collection 6095 5 Check shortly drawn 630 6 Check returned 540 7 Bank service charges -80 8 Adjusted balance 33650
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