Question

Bank Reconciliation Instructions Chart Of Accounts Amount Descriptions Bank Reconciliation General Journal Instructions Valentine Investigations has the following information for its cash account: Balance, 1/31 Deposits during February Checks written during February $ 7,445 106,720 102,370 Valentine's bank statement for February contained the following information: Valentine Investigations Bank Reconciliation Schedule February 28, 20XX 1 Balance per bank, 1/31 $8,860.00 2 Add: 3 February deposits 105,050.00 $113,910.00 Less

Answer 1

1. Bank Reconciliation for February 28:

Particulars	Amount
Balance as on 01/31	$7,445
Add: Deposits made	$106,720
Less: Checks written	$(102,370)
Closing Balance as on 02/28	$11,795
Less: Deposits in Transit	$(4,470)
Add: Outstanding Checks	$5,085
Less: Bank Charges	$(50)
Less: Debit Memo (Electric Bill)	$(700)
Balance as per Bank as on 02/28	$11,660

2. Adjusting Entries:

Date	Particulars	Debit	Credit
02/28/20XX	Bank Service Charges	$50
	Cash/Checking		$50
	(Bank Service Charges paid)
02/28/20XX	Utilities	$700
	Cash/Checking		$700
	(Debit memo for Electric Bill)

3. What is the amount of Cash Balance than should be reported for the Balance sheet as on February 28?

Answer: $11,045 should be reported in the Balance sheet.

Particulars	Amount
Balance beofre Adjustment	$11,795
Less: Bank Charges	$(50)
Less: Debit Memo (Electric Bill)	$(700)
Closing Balance as on 02/28	$11,045