7-4A

The bank portion of the bank reconciliation for Rintala Company at November 30, 2014, was as follows.

Rintala Company Bank Reconciliation November 30, 2014
Cash balance per bank	$14,797.30
Add: Deposits in transit	2,530.20
Less: Outstanding checks	17,327.50
Check Number	Check Amount
3451	$2,260.40
3470	720.10
3471	844.50
3472	1,426.80
3474	1,052.76	6,304.56
Adjusted cash balance per bank	$11,022.94

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
Checks	Deposits
Date	Number	Amount	Date	Amount
12-1	3451	$2,260.40	12-1	$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	12-21	2,945.00
12-10	3477	2,130.00	12-26	2,567.30
12-15	3479	3,080.00	12-29	2,836.00
12-27	3480	600.00	12-30	1,025.00
12-30	3482	475.50	Total	18,152.90
12-29	3483	1,140.00
12-31	3485	540.80
Total	$15,438.70

The cash records per books for December showed the following.

Cash Payments Journal	Cash Receipts Journal
Date	Number	Amount	Date	Number	Amount	Date	Amount
12-1	3475	$1,640.70	12-20	3482	$475.50	12-3	$1,211.60
12-2	3476	1,300.00	12-22	3483	1,140.00	12-7	2,365.10
12-2	3477	2,130.00	12-23	3484	795.24	12-15	2,672.70
12-4	3478	621.30	12-24	3485	450.80	12-20	2,954.00
12-8	3479	3,080.00	12-30	3486	1,889.50	12-25	2,567.30
12-10	3480	600.00	Total	$14,930.44	12-28	2,836.00
12-17	3481	807.40	12-30	1,025.00
12-31	1,190.40
Total	$16,822.10

The bank statement contained two memoranda:

1.	A credit of $3,795.17for the collection of a $3,650.17note for Rintala Company plus interest of $160.00and less a collection fee of $15.00. Rintala Company has not accrued any interest on the note.
2.	A debit of $575.56for an NSF check written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $12,914.60, and the cash balance per the bank statement was $20,731.11. The bank did not make any errors, but two errors were made by Rintala Company.

(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31.(Reconcile the bank balance first and then the book balance.)

RINTALA COMPANY Bank Reconciliation December 31, 2014
Outstanding checksAdjusted cash balance per booksNSF checkNote collected by bankError in recording checkError in depositCash balance per bank statementAdjusted cash balance per bankCash balance per booksDeposits in transit	$
Add:	Deposits in transitCash balance per booksNSF checkOutstanding checksError in depositError in recording checkCash balance per bank statementNote collected by bankAdjusted cash balance per bankAdjusted cash balance per books
Less:	Note collected by bankNSF checkError in recording checkCash balance per bank statementError in depositAdjusted cash balance per bankCash balance per booksAdjusted cash balance per booksDeposits in transitOutstanding checks
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486	$
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
No. 3451No. 3470No. 3471No. 3472No. 3474No. 3475No. 3476No. 3477No. 3478No. 3479No. 3480No. 3481No. 3482No. 3483No. 3484No. 3485No. 3486
Cash balance per booksOutstanding checksDeposits in transitCash balance per bank statementAdjusted cash balance per bankNote collected by bankNSF checkAdjusted cash balance per booksError in recording checkError in deposit	$
Error in depositNSF checkAdjusted cash balance per bankCash balance per booksOutstanding checksCash balance per bank statementAdjusted cash balance per booksDeposits in transitNote collected by bankError in recording check	$
Add:	NSF checkDeposits in transitCash balance per booksError in recording checkCash balance per bank statementError in depositOutstanding checksAdjusted cash balance per bankNote collected by bankAdjusted cash balance per books
Less:	Note collected by bankCash balance per bank statementCash balance per booksError in depositAdjusted cash balance per booksAdjusted cash balance per bankNSF checkError in recording checkDeposits in transitOutstanding checks	$
Cash balance per bank statementError in recording checkError in depositAdjusted cash balance per bankCash balance per booksAdjusted cash balance per booksDeposits in transitOutstanding checksNSF checkNote collected by bank
Outstanding checksError in depositNote collected by bankNSF checkCash balance per bank statementAdjusted cash balance per booksAdjusted cash balance per bankError in recording checkCash balance per booksDeposits in transit
NSF checkError in depositCash balance per bank statementAdjusted cash balance per bankCash balance per booksError in recording checkAdjusted cash balance per booksOutstanding checksDeposits in transitNote collected by bank	$

(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.)(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date.	Account Titles and Explanation	Debit	Credit
Dec 31.
(To record collection of note receivable by bank)
Dec. 31Nov. 30
(To record NSF Check)
Dec. 31Nov. 30
(To correct error in recording check)
Nov. 30Dec. 31
(To correct error in deposit)

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