Problem 7-4A (Part Level Submission)

The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows.

LANGER COMPANY

Bank Reconciliation

November 30, 2017

Cash balance per bank

$14,777.90

Add: Deposits in transit

2,530.20

17,308.10

Less: Outstanding checks

Check Number

Check Amount

3451

$ 2,260.40

3470

720.10

3471

844.50

3472

1,426.80

3474

1,053.00

6,304.80

Adjusted cash balance per bank

$11,003.30

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

12-31 3485

540.80

Total

$15,438.70

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 795.00 12-15 2,672.70

12-4 3478 621.30 12-24 3485

450.80

12-20 2,954.00

12-8 3479 3,080.00 12-30 3486

889.50

12-25 2,567.30

12-10 3480 600.00 Total

$13,930.20

12-28 2,836.00

12-17 3481 807.40 12-30 1,025.00

12-31

1,690.40

Total

$17,322.10

The bank statement contained two memoranda:

1. A credit of $5,315 for the collection of a $5,170 note for Langer Company plus interest of $160.00 and less a collection fee of $15.00. Langer Company has not accrued any interest on the note.

2. A debit of $575.80 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $14,395.20, and the cash balance per the bank statement was $22,231.30. The bank did not make any errors, but two errors were made by Langer Company.

Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31. (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance first. Reconcile cash balance per bank first.)

LANGER COMPANY

Bank Reconciliation

December 31, 2017