Accounting Help Please!!!

ac2760_wk05_assign_1.xlsx

Instructions

AC2760
Week 5 Assignment
Read the following scenario, and complete the form on the following worksheet:
The cash account for Interactive Systems at February 28, 2011 indicated a balance 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 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 $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.

Name:

Section:

Enter the appropriate amount or item in the shaded cells.

An asterisk (*) will appear next to an incorrect amount in the outlined cells.

Please use the drop-down list (right of the cell) to enter the account description box on the worksheet.

INTERACTIVE SYSTEMS

Bank Reconciliation

February 28, 2011

Cash balance according to bank statement

Add:

Error in recording check

Deduct:

Bank error in charging check as $145 instead of $415

Outstanding checks

Adjusted balance

Bank service charges

Deposit of February 28, not recorded by bank

Cash balance according to company's records

Proceeds of note collected by bank, including $200 interest

Add:

Deduct:

Adjusted balance

Journal Entry #1

Debit

Credit

Accounts Payable - Busser Co.

cpence: Enter the largest of the three credits on this line. Select the account from the drop-down list

Cash

Craig Pence: Enter the smallest of the three credits on this line. Select the account from the drop-down list

Interest Revenue

UMA Computer: UMA Computer: Select the account from the drop-down list

Miscellaneous Administrative Expense

Notes Receivable

Journal Entry #2

UMA Computer: UMA Computer: Select the account from the drop-down list

cpence: Enter the larger of the two amounts on this line. Enter the amounts as positive values.

UMA Computer: UMA Computer: Select the account from the drop-down list

cpence: Enter the larger of the two amounts on this line.

UMA Computer: UMA Computer: Select the account from the drop-down list

cpence: Record increases to cash in this entry. Select the account from the drop-down list