1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.
The cash account for Interactive Systems at February 28, 2010, indicated a balance of
$7,635. The bank statement indicated a balance of $13,333 on February 28, 2010.
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
d. A check for $290 returned with the statement had been incorrectly recorded by
Interactive 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.