LANGER COMPANY Bank Reconciliation November 30, 2014 $14,765.55 2,530.20 17,295.
ID: 2447745 • Letter: L
Question
LANGER COMPANY
Bank Reconciliation
November 30, 2014
$14,765.55
2,530.20
17,295.75
Check Number
Check Amount
$ 2,260.40
720.10
844.50
1,426.80
1,055.14
6,306.94
$10,988.81
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
1,025.00
$18,152.90
520.80
$15,418.70
Cash Payments Journal
Cash Receipts Journal
Date
Number
Amount
Date
Number
Amount
Date
Amount
250.80
889.50
$13,728.06
1,690.40
$17,322.10
LANGER COMPANY
Bank Reconciliation
December 31, 2014
No.
Account Titles and Explanation
Debit
Credit
(To record collection of note receivable by bank)
(To record NSF Check)
(To correct error in recording check)
(To correct error in deposit)
The bank portion of the bank reconciliation for Langer Company at November 30, 2014, was as follows.LANGER COMPANY
Bank Reconciliation
November 30, 2014
$14,765.55
Add: Deposits in transit2,530.20
Less: Outstanding checks17,295.75
Check Number
Check Amount
3451$ 2,260.40
3470720.10
3471844.50
34721,426.80
34741,055.14
6,306.94
Adjusted cash balance per bank$10,988.81
The adjusted cash balance per bank agreed with the cash balance per books at November 30.
The December bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
12-1 3451 $2,260.40 12-1 $ 2,530.20 12-2 3471 844.50 12-4 1,211.60 12-7 3472 1,426.80 12-8 2,365.10 12-4 3475 1,640.70 12-16 2,672.70 12-8 3476 1,300.00 12-21 2,945.00 12-10 3477 2,130.00 12-26 2,567.30 12-15 3479 3,080.00 12-29 2,836.00 12-27 3480 600.00 12-301,025.00
12-30 3482 475.50 Total$18,152.90
12-29 3483 1,140.00 12-31 3485520.80
Total$15,418.70
The cash records per books for December showed the following.
Cash Payments Journal
Cash Receipts Journal
Date
Number
Amount
Date
Number
Amount
Date
Amount
12-1 3475 $1,640.70 12-20 3482 $475.50 12-3 $ 1,211.60 12-2 3476 1,300.00 12-22 3483 1,140.00 12-7 2,365.10 12-2 3477 2,130.00 12-23 3484 792.86 12-15 2,672.70 12-4 3478 621.30 12-24 3485250.80
12-20 2,954.00 12-8 3479 3,080.00 12-30 3486889.50
12-25 2,567.30 12-10 3480 600.00 Total$13,728.06
12-28 2,836.00 12-17 3481 807.40 12-30 1,025.00 12-311,690.40
Total$17,322.10
The bank statement contained two memoranda:
1. A credit of $5,332.26 for the collection of a $5,187.26 note for Langer Company plus interest of $160.00 and less a collection fee of $15.00. Langer Company has not accrued any interest on the note. 2. A debit of $577.94 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.
At December 31, the cash balance per books was $14,582.85, and the cash balance per the bank statement was $22,254.07. The bank did not make any errors, but two errors were made by Langer Company.
Explanation / Answer
To record the collection of note, interest and expense
LANGER COMPANY Bank Reconciliation Dec-14 Balance per bank statement $22,254.07 Add: Deposit in Transit $1,690.40 $23,944.47 Less: Outstanding Checks No. 3470 $720.10 No. 3474 $1,055.14 No. 3478 $538.20 No. 3481 $807.40 No. 3484 $792.86 No. 3486 $889.50 $4,803.20 Adjusted cash balance per bank $28,747.67 Balance per books $14,582.85 Add: Note collected by bank $5,332.26 $19,915.11 Less: Error in recording check no. 3485 270 Error in 12-30 deposit 135.5 NSF check 577.94 -983.44 Adjusted cash balance per books $18,931.67 Date DR CR 31-Dec Cash $5,332.26 Miscellaneous Expense $15 Notes Receivable $5,187.26 Interest Revenue 160To record the collection of note, interest and expense
Accounts Receivable—D. Chagnon 577.94 Cash 577.94 To record the NSE Check Accounts Payable 270 Cash 270 To correct the error in check no. 3485 Accounts Receivable Cash 135.5 To correct the error in deposit 135.5Related Questions
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