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CONLIN COMPANY Bank Reconciliation October 31, 2010 Cash balance per bank $11,444.70 Add: Deposits in transit 1,530.20 12,974.90 Less: Outstanding checks Check Number Check Amount

CONLIN COMPANY

Bank Reconciliation

October 31, 2010

Cash balance per bank $11,444.70

Add: Deposits in transit 1,530.20

12,974.90

Less: Outstanding checks

Check Number Check Amount

2451 $1,260.40

2470 720.10

2471 844.50

2472 503.60

2474 1,050.00 4,378.60

Adjusted cash balance per bank $8,596.30

The adjusted cash balance per bank agreed with the cash balance per books at October 31.

The November bank statement showed the following checks and deposits.

Bank Statement

Checks

Deposits

Date

Number

Amount

Date

Amount

11-1

2470

$720.10

11-1

$1,530.20

11-2

2471

844.50

11-4

1,211.60

11-5

2474

1,050.00

11-8

990.10

11-4

2475

1,640.70

11-13

2,575.00

11-8

2476

2,830.00

11-18

1,472.70

11-10

2477

600.00

11-21

2,945.00

11-15

2479

1,750.00

11-25

2,567.30

11-18

2480

1,330.00

11-28

1,650.00

11-27

2481

695.40

11-30

1,186.00

11-30

2483

575.50

Total

$16,127.90

11-29

2486

900.00

Total

$12,936.20

The cash records per books for November showed the following.

Cash Payments Journal

Cash Receipts Journal

Date

Number

Amount

Date

Number

Amount

Date

Amount

11-1

2475

$1,640.70

11-20

2483

$575.50

11-3

$1,211.60

11-2

2476

2,830.0

11-22

2484

829.50

11-7

990.10

11-2

2477

600.00

11-23

2485

974.80

11-12

2,575.00

11-4

2478

538.20

11-24

2486

900.00

11-17

1,472.70

11-8

2479

1,570.00

11-29

2487

398.00

11-20

2,954.00

11-10

2480

1,330.00

11-30

2488

1,200.00

11-24

2,567.30

11-15

2481

695.40

Total

$14,933.20

11-27

1,650.00

11-18

2482

612.00

11-29

1,186.00

11-30

2,338.00

Total

$16,944.70

The bank statement contained two memoranda:

1. A credit of $2,505.00 for the collection of a $2,400 note for Conlin Company plus interest of $120 and less a collection fee of $15. Conlin Company has not accrued any interest on the note.

2. A debit for the printing of additional company checks $72.

At November 30, the cash balance per books was $10,846.90, and the cash balanced per the bank statement was $17,069.40. The bank did not make errors, but two errors were made by Conlin Company.

Instructions

(a) Prepare a bank reconciliation at November 30.

*Adjusted cash balance per bank $13,090.90.

(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 to recording cash receipts should be made to Accounts Receivable.)

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