chapter 7 lab -04

Bank Reconciliation and Entries

The cash account for Collegiate Sports Co. on November 1, 20Y9, 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, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $41,840.

A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.

A check for $7,250 had been incorrectly charged by the bank as $2,750.

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.

The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000.

Bank service charges for November amounted to $125.

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, 20Y9.

Collegiate Sports Co.

Bank Reconciliation

November 30, 20Y9

Cash balance according to bank statement		$
Adjustments:
Deposit of November 30, not recorded by bank	$
Bank error in charging check as $2,750 instead of $7,250
Outstanding checks
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
Adjustments:
Proceeds of note collected by bank, including $385 interest	$
Error in recording check as $7,600 instead of $760
Check returned because of insufficient funds
Bank service charges
Total adjustments
Adjusted balance		$

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound entry, if an amount box does not require an entry, leave it blank.

20Y9 Nov. 30	Cash
	Notes Receivable
	Interest Revenue
	Accounts Payable-Ramirez Co.
Nov. 30	Accounts Receivable-Hallen Academy
	Miscellaneous Expense
	Cash

3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 20Y9, what amount should be reported as cash? $____________________