Chapter 7 lab The cash account for Stone Systems at July 31, 20Y5, indicated a b
ID: 2541558 • Letter: C
Question
Chapter 7 lab
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:
Checks outstanding totaled $17,865.
A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
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.
A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.
Bank service charges for July amounted to $80.
Required:
1. Prepare a bank reconciliation.
2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound entry, if an amount box does not require an entry, leave it blank.
3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?
$_______________
The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $41,840.
A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.
A check for $7,250 had been incorrectly charged by the bank as $2,750.
A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account.
The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000.
Bank service charges for November amounted to $125.
A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.
Required:
1. Prepare a bank reconciliation as of November 30, 20Y9.
2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound entry, if an amount box does not require an entry, leave it blank.
Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement $ Adjustments: Deposit of July 31, not recorded by bank $ Bank error in charging check as $1,180 instead of $1,810 Outstanding checks Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: Proceeds of note collected by bank, including $345 interest $ Error in recording check by Stone Systems Bank service charges Total adjustments Adjusted balance $Explanation / Answer
1.
2.
3. Amount reported as cash on July 31, 20Y5: $24305
Please post independent questions separately. Thank you.
Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement 33650 Adjustments: Deposit of July 31, not recorded by bank 9150 Bank error in charging check as $1,180 instead of $1,810 -630 Outstanding checks -17865 Total adjustments -9345 Adjusted balance 24305 Cash balance according to company's records 17750 Adjustments: Proceeds of note collected by bank, including $345 interest 6095 Error in recording check by Stone Systems ($930 - $390) 540 Bank service charges -80 Total adjustments 6555 Adjusted balance 24305Related Questions
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