Question
P8-4A The bank portion of the bank reconciliation for Backhaus Company at November 30, 2010, was as follows. BACKHAUS COMPANY Bank Reconciliation November 30, 2011
P8-4A The bank portion of the bank reconciliation for Backhaus Company at November 30, 2010, was as follows.
BACKHAUS COMPANY
Bank Reconciliation
November 30, 2011
Cash balance per bank $14,367.90
Add: Deposits in transit 2,530.20
16,898.10
Less: Outstanding checks
Check Number Check Amount
3451 $2,260.40
3470 720.10
3471 844.50
3472 1,426.80
3474 1,050.00 6,301.80
Adjusted cash balance per bank $10,596.30
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 |
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12-31 | 3485 | 540.80 |
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| Total | $15,438.70 |
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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 | 798.00 |
| 12-15 | 2,672.70 |
12-4 | 3478 | 621.30 | 12-24 | 3485 | 450.80 |
| 12-20 | 2,954.00 |
12-8 | 3479 | 3080.00 | 12-30 | 3486 | 1,889.50 |
| 12-25 | 2,567.30 |
12-10 | 3480 | 600.00 | Total |
| $14,933.20 |
| 12-28 | 2,836.00 |
12-17 | 3481 | 807.40 |
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| 12-30 | 1,025.00 |
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| 12-31 | 1,690.40 |
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| Total | $17,322.10 |
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The bank statement contained two memoranda:
A credit of $4,145 for the collection of a $4,000 note for Backhaus Company plus interest of $160 and less a collection fee of $15. Backhaus Company has not accrued any interest on the note.
A debit of $572.80 for 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 $12,985.20, and the cash balanced per the bank statement was $20,654.30. The bank did not make errors, but two errors were made by Backhaus Company.
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Instructions
Prepare a bank reconciliation at December 31.
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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