Question - Read the following scenario, and complete the form on the following worksheet:
The cash account for Interactive Systems at February 28, 2011 indicated a balnce 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 refveals 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.
To Do:
1. Prepare a bank reconciliation. Use the provided form on the following worksheet. Please use the drop-down list (right of the cell) to enter the account description box on the worksheet.
2. Journalize the necessary entries. The accounts have not been closed. Use the provided form on the following worksheet.