1) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31.
2) Prepare the adjusting entries on the reconciliation.
Vaughn COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank Add: Deposits in transit $14,767.90 2,530.20 17,298.10 Less: Outstanding checks Check Number 3451 3470 3471 3472 3474 Check Amount $2,260.40 720.10 844.50 1,426.80 1,054.50 6,306.30 Adjusted cash balance per $10,991.80 bank 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 Deposits Checks Amount Date $2,260.40 12-1 844.50 12-4 1,426.80 12-8 Amount Number 3451 3471 3472 3475 3476 3477 3479 3480 3482 3483 3485 Date 12-1 12-2 $2,530.20 1,211.60 2,365.10 2,672.70 2,945 2,567.30 2,836 1,025 $18,152.90 1,640.70 12-16 12-4 12-8 12-10 12-15 12-27 12-30 12-29 12-31 1,300 12-21 2,130 12-26 12-29 600 12-30 3,080 475.50 1,140 520.80 $15,418.70 Total The cash records per books for December showed the following. Cash Receipts Journal Cash Payments Journal Amount Date 12-3 12-7 12-15 12-20 12-25 Date Number Amount Date Number Amount $1,211.60 2,365.10 2,672.70 2,954 2,567.30 2,836 1,025 1,690.40 $17,322.10 $475.50 1,140 793.50 250.80 889.50 $1,640.70 12-20 3482 3475 3476 3477 3478 3479 12-10 3480 12-17 3481 1,300 12-22 2,130 12-23 621.30 12-24 3,080 12-30 600 Total 3483 3484 485 34869 12-8 515:728.0 12-28 12-30 12-31 Total 807.40 The bank statement contained two memoranda: 1. A credit of $2,330 for the collection of Langer Company of an electronic funds transfer 2. A debit for the printing of additional company checks $89.50. At December 31, the cash balance per books was $14,585.20, and the cash balance per the bank statement was $19,742.60. The bank did not make any errors, but Langer Company made two errors VAUGHN COMPANY Bank Reconciliation December 31, 2020 Cash balance per bank statement v Add ' I. I Deposits in transit Less Outstanding checks Adjusted cash balance per bank Cash balance per books Add . Electronic funds transfer received v | Less Prepare the adjusting entries based on the reconciliation. (Credit account titles are automatically indented when amount is entered. No. Account Titles and Explanation Dec. 31 Debit Credit (To record collection of note receivable by bank) Dec. 31 (To record bank service charge) Dec. 31 (To correct error in recording check) Dec. 31 To correct error in deposit) Vaughn COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank Add: Deposits in transit $14,767.90 2,530.20 17,298.10 Less: Outstanding checks Check Number 3451 3470 3471 3472 3474 Check Amount $2,260.40 720.10 844.50 1,426.80 1,054.50 6,306.30 Adjusted cash balance per $10,991.80 bank 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 Deposits Checks Amount Date $2,260.40 12-1 844.50 12-4 1,426.80 12-8 Amount Number 3451 3471 3472 3475 3476 3477 3479 3480 3482 3483 3485 Date 12-1 12-2 $2,530.20 1,211.60 2,365.10 2,672.70 2,945 2,567.30 2,836 1,025 $18,152.90 1,640.70 12-16 12-4 12-8 12-10 12-15 12-27 12-30 12-29 12-31 1,300 12-21 2,130 12-26 12-29 600 12-30 3,080 475.50 1,140 520.80 $15,418.70 Total The cash records per books for December showed the following. Cash Receipts Journal Cash Payments Journal Amount Date 12-3 12-7 12-15 12-20 12-25 Date Number Amount Date Number Amount $1,211.60 2,365.10 2,672.70 2,954 2,567.30 2,836 1,025 1,690.40 $17,322.10 $475.50 1,140 793.50 250.80 889.50 $1,640.70 12-20 3482 3475 3476 3477 3478 3479 12-10 3480 12-17 3481 1,300 12-22 2,130 12-23 621.30 12-24 3,080 12-30 600 Total 3483 3484 485 34869 12-8 515:728.0 12-28 12-30 12-31 Total 807.40 The bank statement contained two memoranda: 1. A credit of $2,330 for the collection of Langer Company of an electronic funds transfer 2. A debit for the printing of additional company checks $89.50. At December 31, the cash balance per books was $14,585.20, and the cash balance per the bank statement was $19,742.60. The bank did not make any errors, but Langer Company made two errors VAUGHN COMPANY Bank Reconciliation December 31, 2020 Cash balance per bank statement v Add ' I. I Deposits in transit Less Outstanding checks Adjusted cash balance per bank Cash balance per books Add . Electronic funds transfer received v | Less Prepare the adjusting entries based on the reconciliation. (Credit account titles are automatically indented when amount is entered. No. Account Titles and Explanation Dec. 31 Debit Credit (To record collection of note receivable by bank) Dec. 31 (To record bank service charge) Dec. 31 (To correct error in recording check) Dec. 31 To correct error in deposit)
