Question

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank statement indicated a balance of $15,440 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 $5,560. A deposit of $5,790, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $3,010 on a note left for collection. The face of the note was $2,860. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $400 had been incorrectly charged by the bank as $40. Bank service charges for July amounted to $50.

Required:
Prepare a bank reconciliation.

Answer 1

Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310

Step-by-step explanation:

Bank Reconciliation Statement for July 31 , 20Y5 for Stone Systems

Particulars Amount

Balance on bank statement $15,440

Additions:

Outstanding Deposits $5,790

Deductions:

Outstanding checks $5,560

Bank Error (400-40) $360

Adjusted bank balance $15,310

Balance in books $12,270.

Additions:

Note Collection plus interest $3,010

Incorrect recording of check

($880-$800) $80

Deductions

Bank Service charges $50

Adjusted book balance $15,310