Problem 7-4A |
Your answer is correct.
The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown below.
HORSMAN
COMPANY |
||||
Cash balance per bank |
$12,788.16 |
|||
Add: Deposits in transit |
1,530.20 |
|||
Less: Outstanding checks |
14,318.36 |
|||
Check Number |
Check Amount |
|||
2451 |
$ 1,260.40 |
|||
2470 |
684.20 |
|||
2471 |
844.50 |
|||
2472 |
428.46 |
|||
2474 |
1,050.00 |
4,267.56 |
||
Adjusted cash balance per bank |
$10,050.80 |
The adjusted cash balance per bank agreed with the cash balance per books at
October 31. The November bank statement showed the following checks and
deposits.
Bank Statement |
||||||||
Checks |
Deposits |
|||||||
Date |
Number |
Amount |
Date |
Amount |
||||
11-1 |
2470 |
$ 684.20 |
11-1 |
$ 1,530.20 |
||||
11-2 |
2471 |
844.50 |
11-4 |
1,211.60 |
||||
11-5 |
2474 |
1,050.00 |
11-8 |
990.10 |
||||
11-4 |
2475 |
1,640.70 |
11-13 |
2,575.00 |
||||
11-8 |
2476 |
2,830.00 |
11-18 |
1,472.70 |
||||
11-10 |
2477 |
600.00 |
11-21 |
2,945.00 |
||||
11-15 |
2479 |
1,740.00 |
11-25 |
2,567.30 |
||||
11-18 |
2480 |
1,330.00 |
11-28 |
1,650.00 |
||||
11-27 |
2481 |
695.40 |
11-30 |
1,186.00 |
||||
11-30 |
2483 |
575.50 |
Total |
16,127.90 |
||||
11-29 |
2486 |
940.00 |
||||||
Total |
$12,930.30 |
The cash records per books for November showed the following.
Cash Payments Journal |
Cash Receipts Journal |
|||||||||||||
Date |
Number |
Amount |
Date |
Number |
Amount |
Date |
Amount |
|||||||
11-1 |
2475 |
$1,640.70 |
11-20 |
2483 |
$ 575.50 |
11-3 |
$ 1,211.60 |
|||||||
11-2 |
2476 |
2,830.00 |
11-22 |
2484 |
827.84 |
11-7 |
990.10 |
|||||||
11-2 |
2477 |
600.00 |
11-23 |
2485 |
974.80 |
11-12 |
2,575.00 |
|||||||
11-4 |
2478 |
538.20 |
11-24 |
2486 |
940.00 |
11-17 |
1,472.70 |
|||||||
11-8 |
2479 |
1,704.00 |
11-29 |
2487 |
398.00 |
11-20 |
2,954.00 |
|||||||
11-10 |
2480 |
1,330.00 |
11-30 |
2488 |
800.00 |
11-24 |
2,567.30 |
|||||||
11-15 |
2481 |
695.40 |
Total |
$14,466.44 |
11-27 |
1,650.00 |
||||||||
11-18 |
2482 |
612.00 |
11-29 |
1,186.00 |
||||||||||
11-30 |
1,724.26 |
|||||||||||||
Total |
$16,330.96 |
The bank statement contained two bank memoranda:
1. |
A credit of $2,389.22 for the collection of a $2,247.22 note for Horsman Company plus interest of $157.00 and less a collection fee of $15.00. Horsman Company has not accrued any interest on the note. |
|
2. |
A debit for the printing of additional company checks $86.66. |
At November 30, the cash balance per books was $11,915.32 and the cash
balance per bank statement was $18,288.32. The bank did not make any errors,
but Horsman Company made two errors.
(a) Prepare a bank reconciliation at November 30, 2012.
(b) Prepare the adjusting entries based on the reconciliation. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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