5. The bank portion of the bank reconciliation for Carlin Company at November 30, 2020 is shown below. CARLIN COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank $14,367.90 Add: Deposits in transit 2.530 20 16.898.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2.260.40 3470 1,100.10 3471 844.50 3472 1,426.80 3474 1.050.00 6.681.80 Adjusted cash balance per bank $10.216.30 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 Date 12-1 12-2 12-7 12-4 12-8 12-10 12-15 12-27 12-30 12-29 12-31 Checks Number 3451 3470 3472 3475 3476 3477 3479 3480 3482 3484 3485 Total Bank Statement Amount $ 2,260.40 1,100.10 1.426.80 1,640.70 1,300.00 2,130.00 3,080.00 600.00 475.50 764.00 540.80 $15.318.30 Date 12-1 12-4 12-8 12-16 12-21 12-26 12-29 12-30 Total Deposits Amount $ 2.530.20 1.211.60 2,365.10 2,632.70 2,945.00 2.567.30 2,836.00 1.025.00 $18.612.90 The cash records per books for December showed the following Date 12-1 12-2 12-2 12-4 12-8 12-10 12-17 Cash Payments Journal Number Amount Date Number Amount 3475 $1,640.70 12-20 3482 $ 475.50 3476 1,300.00 12-22 3483 1,340.00 3477 2,130.00 12-23 3484 764.00 3478 538.20 12-24 3485 450.80 3479 3,080.00 12-30 3486 1.389.50 3480 600.00 Total $14.516.10 3481 807.40 Cash Receipts Journal Date Amount 12-3 $1.211.60 12-7 2,365.10 12-15 2,672.70 12-20 2,945.00 12-25 2,567.30 12-28 2,836.00 12-30 1,025.00 12-31 1.190.40 Total $16.813.10 The bank statement contained two bank memoranda: 1. A credit of $2,645 for the collection of a $2,500 note for Carlin Company plus interest of $160 and less a collection fee of $15. Carlin Company has not accrued any interest on the note. 2. A debit of $819.10 for an NSF check written by K. Webster, a customer. At December 31, the check had not been redeposited in the bank. At December 31, the cash balance per books was $12,513.30, and the cash balance per bank statement was $18,988.40. The bank did not make any errors, but Carlin Company made two errors. Instructions (a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31, 2020. 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.) (b) a. 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.)
