The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a) Checks outstanding totaled $32,700.
b) A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement.
c) The bank collected $26,750 on a $25,000 note, including interest of $1,750.
d) A check for $1,500 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $150. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account.
e) A check drawn for $490 had been erroneously charged by the bank as $940
f) Bank service charges for November amounted to $60
Instructions:-
1) Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.“Deduct:” or “Add:” will automatically appear if it is required
2) Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3) If a balance sheet were prepared for Capstone Medical Co. on November 30, 2016, what amount should be reported as cash?