bank reconciliation\nvalentine investigations has the following information for its cash account:\nbalance…

bank reconciliation\nvalentine investigations has the following information for its cash account:\nbalance, 1/31 $7,641\ndeposits during february 106,780\nchecks written during february 102,341\nvalentines bank statement for february contained the following information:\nbalance, 1/31 $9,107\nadd: february deposits 104,950\n$114,057\nless: checks paid in february $101,400\nbank service charge 50\ndebit memo (electric bill) 800\n102,250\nbalance per bank, 2/28 $11,807\na comparison of company records with the bank statement provided the following data:\nat 1/31 at 2/28\ndeposits in transit $2,750 $4,580\noutstanding checks 4,216 5,157\nrequired:\n1. prepare a bank reconciliation as of february 28.\nvalentine investigations\nbank reconciliation\nfebruary 28\ncash balance from bank statement\nadjusted cash balance\ncash balance from company records\nless:\nadjusted cash balance\n2. prepare journal entries for valentine based on the information developed in the bank reconciliation. if an amount box does not require an entry, leave it blank.\nfebruary 28\n(record bank service charge)\nfebruary 28\n(record debit memo for payment of utilities)\n3. what is the amount of cash that should be reported on the february 28 balance sheet?

bank reconciliation\nvalentine investigations has the following information for its cash account:\nbalance, 1/31 $7,641\ndeposits during february 106,780\nchecks written during february 102,341\nvalentines bank statement for february contained the following information:\nbalance, 1/31 $9,107\nadd: february deposits 104,950\n$114,057\nless: checks paid in february $101,400\nbank service charge 50\ndebit memo (electric bill) 800\n102,250\nbalance per bank, 2/28 $11,807\na comparison of company records with the bank statement provided the following data:\nat 1/31 at 2/28\ndeposits in transit $2,750 $4,580\noutstanding checks 4,216 5,157\nrequired:\n1. prepare a bank reconciliation as of february 28.\nvalentine investigations\nbank reconciliation\nfebruary 28\ncash balance from bank statement\nadjusted cash balance\ncash balance from company records\nless:\nadjusted cash balance\n2. prepare journal entries for valentine based on the information developed in the bank reconciliation. if an amount box does not require an entry, leave it blank.\nfebruary 28\n(record bank service charge)\nfebruary 28\n(record debit memo for payment of utilities)\n3. what is the amount of cash that should be reported on the february 28 balance sheet?

Answer

Explanation:

Step1: Calculate adjusted cash balance from bank statement

We start with the balance per bank statement ($11,807), add deposits in transit ($4,580) and subtract outstanding checks ($5,157). $11807 + 4580-5157$

Step2: Calculate adjusted cash balance from company records

We start with the cash balance per company records. First, find the cash balance per company records: $7641+106780 - 102341=12080$. Then we subtract bank service charge ($50) and debit memo ($800). $12080-50 - 800$

Answer:

Bank Reconciliation - February 28

Cash balance from bank statement: $11,807 Add: Deposits in transit: $4,580 Less: Outstanding checks: $5,157 Adjusted cash balance: $11230

Cash balance from company records: $12,080 Less: Bank service charge: $50 Less: Debit memo: $800 Adjusted cash balance: $11230

Journal Entries

February 28

Account Title Debit Credit
Bank Service Charge Expense $50
Cash $50
February 28
Account Title Debit Credit
--- --- ---
Utilities Expense $800
Cash $800

Amount of cash on February 28 balance sheet

$11,230