The following information is available regarding Stone Inc. Jmarks) ailable rega
ID: 2573715 • Letter: T
Question
The following information is available regarding Stone Inc. Jmarks) ailable regarding Stone Inc.'s Bank information for September 2012: lance on the September 30, 2017 Bank statement was $8,316.00. 2. The company's Cash ledger account showed 3. Deposit of $800 made by Stone, late on September 30 was (s Cash ledger account showed a balance of $8,778.00 on September 30. 4. A comparison between the cheques returned with the made by Stone, late on September 30 was not included on the Bank statement. between the cheques returned with the Bank statement and the company records indicates that the following cheques were still outstanding on September 30: No. 101 $ 641.00 No. 112 1,025.00 e for $1,206.00 from a customer was returned along with the September's bank statement as a NSF cheque. Stone intends to pursue payment from the customer. A cheque written by Stone to pay an outstanding account in the amount of $191. was erroneously entered as $119. by Stone's bookkeeper. 7. Bank service charges amounted to $50. Required: 1. Prepare the September Bank Reconciliation for Stone Inc. 2. Prepare necessary Journal Entries to record the adjustments from the Bank Reconciliation for Stone Inc. “Bank reconciliation is a waste of time as the timing differences between the bank statement and the books will be taken care of as time goes by." Do you agree with this statement? Why or why not? THE ENDExplanation / Answer
Bank reconciliation Bank balance 8316 Add Deposit in transit 800 9116 Less Outstanding checks 1666 Adjusted bank balance 7450 Outstanding checks Chq no. 101 641 Chq no. 112 1025 1666 Cash balance 8778 Add 0 Less Error in cheque (191-119) 72 NSF cheque 1206 service charge 50 1328 Adjusted cash balance 7450 Journal entries Service charges 50 Accounts payable 1206 Cash 1256
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