The bank portion of the bank reconciliation for Shou Florists at November 30, 2020, was as follows (amounts in thousands).

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.

The cash records per books for December showed the following.

The bank statement contained two memoranda:
1. A credit of HK$2,242 for the collection of Shou Florists of an electronic funds transfer.
2. A debit for the printing of additional company checks HK$85.
At December 31, the cash balance per books was HK$13,985.20, and the cash balance per the bank statement was HK$19,239.10. The bank did not make any errors, but Shou Florists made two errors.

Instructions
a. Using the steps in the reconciliation procedure described in the chapter, prepare a bank reconciliation at December 31, 2020.
b. Prepare the adjusting entries based on the reconciliation. (Hint: 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.)

Transcribed Image Text:

Shou Florists Bank Reconciliation November 30, 2020 Cash balance per bank Add: Deposits in transit HK$14,367.90 2,530.20 16,898.10 Less: Outstanding checks Check Number Check Amount 3451 HK$2,260.40 720.10 3470 3471 844.50 3472 1,426.80 1,050.00 3474 6,301.80 Adjusted cash balance per bank HK$10,596.30 Bank Statement Checks Deposits Date Number Amount Date Amount 12-1 3451 HK$ 2,260.40 12-1 HK$ 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 2,130.00 3,080.00 12-21 2,945.00 12-10 3477 12-26 2,567.30 12-15 3479 12-29 2,836.00 12-27 3480 600.00 12-30 1,025.00 12-30 3482 475.50 Total HK$18,152.90 12-29 3483 1,140.00 12-31 3485 540.80 Total HK$15,438.70