In: Accounting
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.
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 | $ |
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.
20Y5 July 31 | Cash | ||
Notes Receivable | |||
Interest Revenue | |||
Accounts Payable-Holland Co. | |||
July 31 | Miscellaneous Expense | ||
Cash |
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.
Collegiate Sports Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 20Y9, what amount should be reported as cash? $______ |
1.
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 | 24305 |
2.
Date | Description | Debit | Credit |
20Y5 July 31 | Cash | 6635 | |
Notes receivable | 5750 | ||
Interest revenue | 345 | ||
Accounts payable-Holland Co. | 540 | ||
Jul-31 | Miscellaneous expense | 80 | |
Cash | 80 |
3. Amount reported as cash on July 31, 20Y5: $24305
Please post independent questions separately. Thank you.