The following Information applies to the questions displayed

The following Information applies to the questions displayed below.j The bookkeeper at Tony Company has asked you to prepare a bank reconcilation as of February 29. The February bank statement and the February T-account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Other Balance $57,100 Balance, February 1 February 2 February 4 February 5 February 9 February 12 February 14 February 19 February 23 February 26 February 27 February 28 39,800 #101 $.17,300 $11,500 51,300 50,935 38,535 30,085 44,085 33,685 49,685 42,035 42,275 NSF $ 365 #102 12.400 #103 8.450 14,000 #104 10.400 16,000 #105 7.650 Interest earned 240 Service charge 45 42 ,230 Cash (A) 57100 11,500 Feb. 1 Balance Feb. 2 Feb. 13 Feb. 21 Feb. 28 17,300 14,00012,400 8,450 10,400 7,650 1,420 Feb. 1 Feb. 7 Feb. 11 Feb. 17 Feb. 25 Feb. 29 #101 #102 #103 #104 #105 #106 16,000 8,700 Feb. 29 Balance 49,680 Tony Company\'s bank reconciliation at the end of January showed no outstanding checks. No deposits were In transit at the end of January, but a deposit was In transit at the end of February.

Solution

Bank Reconciliation Bank Statement 42,230 Company\'s books 49,680 ending balance per bank statement Ending balance as per cash account Addittions: Addittions: Deposits in transit 8,700 8,700 interest earned 240 240 50,930 49,920 Deductions: Deductions: Checks outstanding 1,420 1,420 NSF 365 Service charge 45 410 Up-to-Date Cash Balance 49,510 Up-to-Date Cash Balance 49,510 Transaction General Journl Debit Credit 1) cash 240 interest earned 240 2) Account receivable 365 cash 365 3) Service charge/Misc expense 45 cash 45