Helena€™s House of Toys banks online with Example Bank. It is March 2, 2015, and you have been asked to reconcile the bank statement as at February 28. You gather the following information:
FEBRUARY BANK STATEMENT (note that the later dates are at the top because it is a copy of the online statement):

CASH ACCOUNT TRANSACTIONS FOR FEBRUARY:
GL ACCOUNT: 1060 Cash Account
For the period of February 01-15 to February 28-15

BANK RECONCILIATION FOR PRECEDING MONTH (DATED JANUARY 31):

Instructions
1. Prepare a bank reconciliation as at February 28, 2015. Assume that any errors in recording deposits or cheques were made by the company. Bank deposits are made Wednesday evenings.
2. Journalize any necessary entries.
3. What should be the balance of the Cash Account as at February 28, 2015?

Transcribed Image Text:

EXAMPLE BANK BUSINESS ACCOUNT 11980660 February 2015 Balance as at February 28, 2015: $113.73) DATE DESCRIPTION WITHDRAWALS DEPOSITS BALANCE 43.75 10,954.32 713.00 541.24 54.24 1,221.50 113.73) Feb 28, 2015 Feb 28, 2015 CH Feb 28, 2015 | CHQ#1542 Feb 24, 2015 | CHO#1539 Feb 24, 2015 | CHO#1525 Feb 23, 2015 DEPOSIT Feb 21, 2015 | CHO#1541 Feb 20, 2015 | CHO#1538 Feb 16, 2015 | CHO#1540 Feb 16, 2015 DEPOSIT Feb 15, 2015 EFT Feb 09, 2015 DEPOSIT Fed 07, 2015 | CHO#1536 Feb 06, 2015 Feb 03, 2015 | CHQ#1537 Feb 01, 2015 DEPOSIT # 1 543 10,884.34 11,597.34 12,138.58 12,192.82 13,414.32 6,885.79 7,332.77 8,075.73 17,165.26 8,129.45 4,593.2819,674.95 15,081.67 15,626.59 16,320.55 18,801.84 6,528.53 46.98 742.96 9,035.81 544.92 |CHIO#1535 693.96 2,481.09 39,072.99 9,014.35 29,171.97 DATE DEBIT CREDIT BALANCE Dr. (Cr.) Opening Balance February1 Bank Deposit 9,014.35 8 4,953.28 15 9 9,035.81 11,545.50 6,528.53 February 28 9,047.72 38,579.69 37,862.34 Cash balance according to bank statement... S9,787.29 Deduct outstanding cheques: No. 1525 1526. $1,221.50 1.445.99 2,667.49 Adjusted balance. Cash balance according to company's records Deduct: Service charges. Adjusted balance. $7,163.55 43.75 $7,119.8D