At November 30, the cash balance per books was $14,650.00 and the cash balance p

Question

At November 30, the cash balance per books was $14,650.00 and the cash balance per bank statement was $17,000.00. The bank did not make any errors, but Bogalusa Company made one error. The bank portion of the bank reconcillation for Bogalusa Company at October 31, 2017 is shown here. BOGALUSA COMPANY Bank Reconciliation 31-Oct-17 Cash balance per bank Add: Deposits in transit 13,500.00 Less: Outstanding checks Check Number 2451 Check Amount 1,200.00 2,250.00 Adjusted cash balance per bank The adjusted cash balance per bank agreed with the cash balance per books at Ostober i The November bank statement showed the following checks and deposits: Bank Statement Checks OUT Deposits IN Date NumberAmount 4-Nov 21,60e-ee- 10-Nov 60eee- 1-Nov 1,500.00 2,700.00 13-Nov Total 5,100.00 15-Now2 Total ,750.00 The cash records per books for November showed the following Cash Receipts Journal AR Ccash Payments louralDate mount Date Number 3-Nov 2475 12-Nov 30-Nov Total 000- 2,750.00 -So 1,400.00100 ,050.00 22-Nov 2479 Total 7,200.00500 The bank statement contained two memoranda. L. A credit of $2,200 for the collection for Bogalusa Company of an electronic funds transfer 2. A debit for the printing of additional company checks $100. Instructions: a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at November 30, 2017 b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.) Page 4

Explanation / Answer

BOGALUSA COMPANY Bank Reconciliation October 31, 2017 Cash balance per bank statement $17,000 Add: Deposits in transit $1,400 $18,400 Less: Outstanding Checks # 2451 $1,200 #2478 $500 $1,700 Adjusted cash balance per bank $16,700 Cash balance per books $14,650 Add: Electronic fund transfer $2,200 $16,850 Less: Bank Charges $100 Error in deposit $50 $150 Adjusted Cash balance per books $16,700 B) Journal Entry Date Account Titles and Explanation Debit Credit Dec.31 Cash $2,200 Accounts Receivable $2,200 (To record EFT) Dec.31 Check printing Expense $100 Cash $100 (To record bank charges) Dec.31 Accounts Payable $50 Cash $50 (To correct error in deposit) C) Accounts Receivables Cash (To record NSF Check) D) Accounts Payables Cash The check is written out for more than what was recorded in the check register Cash Accounts Receivables The deposit is recorded on the books as lower than the dollar amount deposited in the bank e) Error (Too High) Cash $50 Accounts payable $50 Correction Accounts Payable $50 Cash $50 Error (Too Low) Accounts Payable $50 Cash $50 Correction Cash $50 Accounts payable $50

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