Ac2760 Financial Accounting: P7-3A The cash account for Interactive Systems

Ac2760 Financial Accounting
Week 5 Assignment

P7-3A Bank reconciliation and entries
The cash account for Interactive Systems at February 28, 2011 indicated a balance of $7,635. The bank statement indicated a balance of $13,333 on February 28, 2011. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

a. Checks outstanding totaled $4,118
b. A deposit of $4,500, representing receipts of February 28, had been made too late to appear on the bank statement.
c. The bank had collected $5,200 on a note left for collection. The face of the note was $5,000.
d. A check for $290 returned with the statement had been incorrectly recorded by Interactives Systems as $920. The check was for the payment of an obligation to Busser Co. for the purchase of office supplies on account.
e. A check drawn for $415 had been incorrectly charged by the bank as $145.
f. Bank service charges for February amounted to $20.

Instructions:
1. Prepare a bank reconciliation. Use the provided form on the following worksheet.
2. Journalize the necessary entries. The accounts have not been closed. Use the provided form on the following worksheet.
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