The cash balance per books for Wellmeyer Company on November 30, 2014, is $10,74
ID: 2446294 • Letter: T
Question
The cash balance per books for Wellmeyer Company on November 30, 2014, is $10,740.93. The following checks and receipts were recorded for the month of December 2014:
In addition, the bank statement for the month of December is presented below:
Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from S. Gill, a customer, in settlement of an account receivable. An entry has not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $60 that has not been accrued. The bank service charge is $15.00.
Prepare a bank reconciliation at December 31. (Enter answers to 2 decimal places, e.g. 25.20. List items that increase cash balance first.)
Explanation / Answer
Workings:
December transactions as per cash Book:
Checks
Receipts
No.
Amount
Amount
Date
17
$ 372.96
$ 843.86
12/5
18
$ 780.62
$ 941.54
12/21
19
$ 157.00
$ 808.58
12/27
20
$ 587.50
$ 1,367.00
12/31
21
$ 234.15
22
$ 578.84
23
$ 1,687.50
24
$ 921.30
25
$ 246.03
Total
$ 5,565.90
$ 3,960.98
Cash Balance as per Books as on November 30, 2014
$ 10,740.93
Add: Total Receipts in the month of December
$ 3,960.98
Less: Total Checks issued in the month of December
$ (5,565.90)
Cash Balance as per Books as on December 31, 2014
$ 9,136.01
Wellmeyer Company
Bank reconciliation at December 31
Cash Balance as per Books as on December 31, 2014
$ 9,136.01
Add: Outstanding checks
20
$ 587.50
23
$ 1,687.50
Less: Service Charge
$ (15.00)
Less: NSF
$ (250.00)
Add: Check 18 Error (780.62-708.62)
$ 72.00
Less: Deposits in transit
$ (1,367.00)
Add: Deposit
Add: CM
$ 1,500.00
Bank Balance as on December 31, 2014
$ 11,351.01
Workings:
December transactions as per cash Book:
Checks
Receipts
No.
Amount
Amount
Date
17
$ 372.96
$ 843.86
12/5
18
$ 780.62
$ 941.54
12/21
19
$ 157.00
$ 808.58
12/27
20
$ 587.50
$ 1,367.00
12/31
21
$ 234.15
22
$ 578.84
23
$ 1,687.50
24
$ 921.30
25
$ 246.03
Total
$ 5,565.90
$ 3,960.98
Cash Balance as per Books as on November 30, 2014
$ 10,740.93
Add: Total Receipts in the month of December
$ 3,960.98
Less: Total Checks issued in the month of December
$ (5,565.90)
Cash Balance as per Books as on December 31, 2014
$ 9,136.01
Wellmeyer Company
Bank reconciliation at December 31
Cash Balance as per Books as on December 31, 2014
$ 9,136.01
Add: Outstanding checks
20
$ 587.50
23
$ 1,687.50
Less: Service Charge
$ (15.00)
Less: NSF
$ (250.00)
Add: Check 18 Error (780.62-708.62)
$ 72.00
Less: Deposits in transit
$ (1,367.00)
Add: Deposit
Add: CM
$ 1,500.00
Bank Balance as on December 31, 2014
$ 11,351.01
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