8:04 Done A v2.cengagenow.com AA Ch 7 Problem Set 1. EX.07.12.ALGO a. Checks outstanding totaled $5,140. 2. EX.07.13.ALGO b. A deposit of $5,350, representing receipts of July 31, had been made too late to appear on the bank 3. EX.07.16 statement. 4. EX.07.17 c. The bank had collected $2,780 on a note left for 5. PR.07.02B collection. The face of the note was $2,640. d. A check for $700 returned with the statement had 6. PR.07.03B.ALGO been incorrectly recorded by Stone Systems as $770. 7. BE.07.05.ALGO The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. e. A check drawn for $600 had been incorrectly charged by the bank as $60. f. Bank service charges for July amounted to $45. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement $ 14,270 Add: Deposit in transit on July 31 5.350 Deduct: Outstanding checks 5,140 Deduct: Bank error in charging check as $60 instead of $600 540 Total deductions Adjusted balance Cash balance according to company's records Adjustments: Add: Note collected by bank, including $140 interest Add: Error in recording check by Stone Systems Total additions Deduct: Bank service charges 45 Adjusted balance 2. Journalize the necessary entries (a. ) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. 20Y5 July 31 July 31 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash? $ Progress: 6/7 items Check My Work 3 more Check My Work uses remaining. Previous Next Assignment Score: 84.82% All work saved. Save and Exit Submit Assignment for Grading8:04 Done A v2.cengagenow.com AA C Ch 7 Problem Set 1. EX.07.12.ALGO Bank Reconciliation and Entries 2. EX.07.13.ALGO The cash account for Stone Systems at July 31, 20Y5, 3. EX.07.16 indicated a balance of $11,135. The bank statement 4. EX.07.17 indicated a balance of $14,270 on July 31, 20Y5. 5. PR.07.02B Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the 6. PR.07.03B.ALGO following reconciling items: 7. BE.07.05.ALGO a. Checks outstanding totaled $5,140.