Bank Reconciliation and Entries The cash account for Collegiate Sports Co. on November 1 indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $41,840. b. A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement. c. A check for $7,250 had been incorrectly charged by the bank as $2,750. d. A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account. e. The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000. f. Bank service charges for November amounted to $125. g. A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds. Required: 1. Prepare a bank reconciliation as of November 30. Collegiate Sports Co. Bank Reconciliation November 30 Cash balance according to bank statement Add deposit of November 30, not recorded by bank 112675 12,200 Deduct outstanding checks 41.840 Deduct bank error in charging check as $2,750 instead of $7,250 4,500 V 46,340 V Adjusted balance $ 78535 Deduct outstanding checks Deduct bank error in charging check as $2,750 instead of $7,250 Adjusted balance 41,840 4,500 46,340 78.535 Cash balance according to company's records 66,935 V Add note and interest collected by bank 7.385 Add error in recording check as $7,600 instead of $760 6,040 V 14,225 Deduct check returned because of insufficient funds Deduct bank service charges Adjusted balance 2.500 125 2.625 78.535 V Feedback Check My Work 1. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If a box does not req an entry, leave it blank.. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If a box does not require an entry, leave it blank. a. Nov. 30 Cash Notes Receivable Interest Revenue Accounts Payable-Ramirez Co. 14.225 000 7,000 385 6.340 b. Nov. 30 Accounts Receivable-Hallen Academy Miscellaneous Expense Cash 2.500 X 2,625 Feedback Check My Work 2. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come from credit memos like collections of notes or interest by the bank increase cash. If the company made an error that overstates or understates cash in the company section, the journal adjustment would decrease Cash or increase Cash, respectively. 3. If a balance sheet is prepared for Collegiate Sports Co. on November 30, what amount should be reported as cash? 78,535 V x D