Question
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 |
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| Total | $12,936.20 |
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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 |
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| 11-29 | 1,186.00 |
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| 11-30 | 2,338.00 |
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| Total | $16,944.70 |
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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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