The bank portion of the bank reconciliation for Langer Company at November 30, 2
ID: 2470838 • Letter: T
Question
The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows.
LANGER COMPANY
Bank Reconciliation
November 30, 2017
Cash balance per bank
$14,537.90
Add: Deposits in transit
2,530.20
17,068.10
Less: Outstanding checks
Check Number
Check Amount
3451
$ 2,260.40
3470
720.10
3471
844.50
3472
1,426.80
3474
1,058.50
6,310.30
Adjusted cash balance per bank
$10,757.80
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
12-30
1,025.00
12-30
3482
475.50
Total
$18,152.90
12-29
3483
1,140.00
12-31
3485
520.80
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
789.50
12-15
2,672.70
12-4
3478
621.30
12-24
3485
250.80
12-20
2,954.00
12-8
3479
3,080.00
12-30
3486
889.50
12-25
2,567.30
12-10
3480
600.00
Total
$13,724.70
12-28
2,836.00
12-17
3481
807.40
12-30
1,025.00
12-31
1,690.40
Total
$17,322.10
The bank statement contained two memoranda:
1.
A credit of $5,335 for the collection of a $5,190 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 $581.30 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 $14,355.20, and the cash balance per the bank statement was $22,025.80. The bank did not make any errors, but two errors were made by Langer Company.
(a)
Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31. (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance first. Reconcile cash balance per bank first.)
LANGER COMPANY
Bank Reconciliation
December 31, 2017
Adjusted cash balance per booksNSF checkCash balance per bank statementError in depositOutstanding checksDeposits in transitNote collected by bankAdjusted cash balance per bankError in recording checkCash balance per books
$
LessAdd:
Deposits in transitAdjusted cash balance per booksCash balance per booksOutstanding checksNote collected by bankError in depositNSF checkCash balance per bank statementError in recording checkAdjusted cash balance per bank
AddLess:
Adjusted cash balance per booksNote collected by bankAdjusted cash balance per bankNSF checkDeposits in transitCash balance per booksError in recording checkOutstanding checksError in depositCash balance per bank statement
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
$
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
Adjusted cash balance per bankAdjusted cash balance per booksOutstanding checksError in recording checkDeposits in transitNote collected by bankCash balance per booksNSF checkError in depositCash balance per bank statement
$
Error in recording checkCash balance per booksError in depositNote collected by bankCash balance per bank statementNSF checkAdjusted cash balance per bankAdjusted cash balance per booksDeposits in transitOutstanding checks
$
LessAdd:
Deposits in transitCash balance per bank statementAdjusted cash balance per bankError in depositCash balance per booksOutstanding checksError in recording checkNote collected by bankAdjusted cash balance per booksNSF check
AddLess:
Outstanding checksNote collected by bankNSF checkError in recording checkCash balance per booksAdjusted cash balance per booksError in depositCash balance per bank statementAdjusted cash balance per bankDeposits in transit
$
Outstanding checksNSF checkDeposits in transitError in recording checkError in depositCash balance per booksAdjusted cash balance per booksNote collected by bankAdjusted cash balance per bankCash balance per bank statement
Note collected by bankCash balance per booksAdjusted cash balance per bankAdjusted cash balance per booksNSF checkError in recording checkError in depositCash balance per bank statementDeposits in transitOutstanding checks
Outstanding checksCash balance per booksNote collected by bankAdjusted cash balance per booksDeposits in transitAdjusted cash balance per bankCash balance per bank statementNSF checkError in recording checkError in deposit
$
The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows.
LANGER COMPANY
Bank Reconciliation
November 30, 2017
Cash balance per bank
$14,537.90
Add: Deposits in transit
2,530.20
17,068.10
Less: Outstanding checks
Check Number
Check Amount
3451
$ 2,260.40
3470
720.10
3471
844.50
3472
1,426.80
3474
1,058.50
6,310.30
Adjusted cash balance per bank
$10,757.80
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
12-30
1,025.00
12-30
3482
475.50
Total
$18,152.90
12-29
3483
1,140.00
12-31
3485
520.80
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
789.50
12-15
2,672.70
12-4
3478
621.30
12-24
3485
250.80
12-20
2,954.00
12-8
3479
3,080.00
12-30
3486
889.50
12-25
2,567.30
12-10
3480
600.00
Total
$13,724.70
12-28
2,836.00
12-17
3481
807.40
12-30
1,025.00
12-31
1,690.40
Total
$17,322.10
The bank statement contained two memoranda:
1.
A credit of $5,335 for the collection of a $5,190 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 $581.30 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 $14,355.20, and the cash balance per the bank statement was $22,025.80. The bank did not make any errors, but two errors were made by Langer Company.
Explanation / Answer
Check outstanding :
22025.8
Balance as per Bank22025.8
Balance as per book 14355.2 Add:Deposit in transit [Dated 12-31 ] 1690.4 Add:Note collected 5335 less:Outstanding checks less:NSF returned -581.30 3470 -720.10 Error in recording (2954-2945) -9 3474 -1058.5 Error in recording checks 3485 (520.8-250.8) -270 3478 -621.3 3481 -807.4 3484 -789.5 3486 -889.5 Adjusted balance as per bank 18829.9 Adjusted balance as per book 18829.9Related Questions
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