Bank reconciliation and entries

Assignment Help Accounting Basics
Reference no: EM13786897

Bank Reconciliation and Entries

The cash account for Stone Systems at July 31, 2014, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 2014. 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.

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, 2014, what amount should be reported as cash?

Reference no: EM13786897

What is the effective interest cost of the given loan

Set up the amortization schedule for a 5-year, $1 million, 9 percent loan that requires equal annual end-of-year principal payments plus interest on the unamortized loan bal

Why may companies seek to engage in business combinations

The core values for this course are integrity and excellence. Applying the values of integrity and excellence, discuss ethical considerations of accounting for business comb

Irregularities led to one of the largest bankruptcies in u.s

Enron Corporation was a darling in the energy-provider arena, and in January 2001 its stock price rose above $100 per share. A collapse of investor confidence in 2001 and

Journal entries and t-accounts for decort company

DeCort Company had these adjusting entry situations at the end of December:May 1-paid $960 for a two -year insurance policy. The policy was for the period May 1-April 30(for

The remaining change in the land account resulted

Partial additional information: The net income for 2010 totaled $1,600. During 2010, the company sold for $390, equipment that cost $390 and had a book value of $300. The comp

Result of increase in fair value of investments

At December 31, 2008, the fair value of the securities was $585,000. What should Quinn report on its 2008 income statement as a result of the increase in fair value of the i

Economic order quantity-ordering costs

Monthly demand for an inventory item currently averages 160 units. The annual carrying cost is $10 per unit. Ordering cost is $60 per order. This information applies to all

Is behavior regarding cost information provided to unethical

Farmer Frank's produces items from local farm products anddistributes them to supermarkets. Is Margaret's behavior regarding the cost information she provided to Susan unethic

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd