cash account for Capstone Medical Co at November 30, 2016, indicated a batance o
ID: 2397085 • Letter: C
Question
cash account for Capstone Medical Co at November 30, 2016, indicated a batance of $97456. The bank statement indicated a balance of $127,950 on November 30,2016 paring the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling tems: A Checks outstanding totaled $30,050 B. A deposit of $19,720, representing receipts of November 30, had been made too late to appear on the bank statement C. The bank collected $22,149 on a $20,700 note, including interest of $1,449 D. A check for $1,450 returned with the statement had been incorrectly recorded by Capstone Medical Co as $145. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account E. A check drawn for $290 had been erroneously charged by the bank as $920 F. Bank service charges for November amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries "Deduct or Add will automatically appear if it is required 2. Journalize the necessary entries. The accounts have not been closed Refer to the Chart of Accounts for exact wording of account tles 3. ir a baiance sheet were prepared for Capstone Medical Co on November 30, 2016 whar amount should be reported as cash?
Explanation / Answer
Requirement 3
Amount to be reported on November 30, 2016, balance sheet is 118260
Bank Reconciliation Statement Cash Balance according to bank Statement 127960 Less Outstanding Checks -30050 Add Deposit of November 30 not recorded by bank 19720 Bank error in charging check as $920 instead of $290 630 Adjusted balance 118260 Cash Balance according to Company records 97456 Add Proceeds of note collected by bank including interest 22149 Less Error in recording check -1305 Less Bank Service Charge -40 Adjusted balance 118260Related Questions
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