Bank Statement Date 12-1 12-2 Number 3451 3471 2,260.40 12-1 2,530.20 1211.60 12

Question

Bank Statement Date 12-1 12-2 Number 3451 3471 2,260.40 12-1 2,530.20 1211.60 12-8 3476 3477 3479 3480 1,300.00 2,130.00 3,080.00 600.00 2,945.00 2567.30 12-10 12-27 12-29 12-26 12-29 12-30 1,025.00 $18,152.90 540.80 $15,43870 12-31 3485 The cash records per books for December showed the following. Cash Receipts Cush Payments Joarnal Date Number Amount Date NuaberAmount 415.50121 2.672 12-2 12-2 3477 2,130.00 12-23 3484 12-4 3478 12-8 3479 3,080.00 12-30 3486 1,889.50 12-10 3480 600.00 Total 12-17 3481 807.40 12-1 3475 $1,640.70 12-20 3482 475.50 12-3 1,21160 2,365.10 798.00 12-15 2,672.70 450.80 12-20 2954.00 12-25 2567.30 $14,933.20 12-28 2,836.00 12-30 1,025.00 12-31 1,69040 1,300.00 12-22 3483 621.30 12-24 3485 bank portion of the bank reconciliation for Helene Company at November 30, Total $17,322.10 2012, was as follows HELENE COMPANY Bank Recondiliation November 30, 2012 The bank statement contained two memoranda: Cash balance per bank Add: Deposits in transit $14,367.90 2,530.20 l Company plus interest of $160 accrued any interest on the note L. A credit of $4,145 for the collection of a $4,000 note for Helene and less a collection fee of $15. Helene Company has not 2. A debit of $572.80 for an NSF check written by L. Purl, a customer. At 16,898.10 check had not been redeposited in the bank. At December 31, the cash balance per books was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Less: Outstanding checks Check Number 3451 3470 3471 3472 3474 Check Amount $2,260.40 720.10 844-50 1,426.80 1,050.00 Helene Company. (a) Using the four steps in the reconciliation procedure, prepare a bak reconciliation at Ca Adjusted balance per books $15,958.40 6,301.80 $10,596.3 December 31 (b) Prepare the adjusting entrics based on the reconciliation. (Hint: The correction of any crrors ()pertaining to recording checks should be made to Accounts Payable. The correction of any Adjusted cash balance per bank The adjusted cash balance per bank agreed with the cash balance per books at November 30. errors relating to recording cash receipts should be made to Accounts Receivable.)

Explanation / Answer

Prepare the bank reconciliation statement as follows:

Prepare the following adjusting entries:

H Inc. Bank Reconciliation December 31, 2012 Particulars Amount Amount Bank statement balance $20,154.30 Add: Deposits in transit $1,690.40 $21,844.70 Deduct: Outstanding checks         #3470 $720.10         #3474 $1,050.00         #3478 $621.30         #3481 $807.40         #3484 $798.00         #3486 $1,889.50 $5,886.30 Adjusted bank balance $15,958.40 Book balance $12,485.20 Add: Note collected ($4,000 + $160 ? $15) $4,145.00                $16,630.20 Deduct:              NSF Check $572.80              Error in recording deposit ($2,954 ? $2,945) $9.00              Error in recording check ($540.80 ? $450.80) $90.00 $671.80 Adjusted book balance $15,958.40

Prepare the following adjusting entries:

Date Account Title and Explanation Debit Credit Dec 31 Cash $4,145.00 Miscellaneous expenses (collection fee) $15.00                        Notes receivable $4,000.00                        Interest revenue $160.00 To record notes receivable collected by bank Dec 31 Accounts receivable $572.80                        Cash $572.80 To record NSF Check Dec 31 Accounts payable $90.00                        Cash $90.00 To correct error in recording check Dec 31 Accounts receivable $9.00                        Cash $9.00 To correct error in recording the deposit

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