Problem 7-4A (Part Level Submission)

The bank portion of the bank reconciliation for LaRoche Company at October 31, 2014, is shown below.

LAROCHE COMPANY

Bank Reconciliation

October 31, 2014

Cash balance per bank $12,367.90

Add: Deposits in transit 1,530.20

Less: Outstanding checks 13,898.10

Check Number Check Amount

2451 $ 1,260.40

2470 684.20

2471 844.50

2472 426.80

2474 1,050.00 4,265.90

Adjusted cash balance per bank $9,632.20

The adjusted cash balance per bank agreed with the cash 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 $ 684.20 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 940.00

Total $12,940.30

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 2,830.00 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 940.00 11-17 1,472.70

11-8 2479 1,705.00 11-29 2487 398.00 11-20 2,954.00

11-10 2480 1,330.00 11-30 2488 800.00 11-24 2,567.30

11-15 2481 695.40 Total $14,469.10 11-27 1,650.00

11-18 2482 612.00 11-29 1,186.00 11-30 1,304.00 Total $15,910.70

The bank statement contained two bank memoranda:

1. A credit of $2,242.00 for the collection of a $2,100 note for LaRoche Company plus interest of $157 and less a collection fee of $15. LaRoche Company has not accrued any interest on the note.

2. A debit for the printing of additional company checks $85.00.

At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but LaRoche Company made two errors.