*Problem 7-4A

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$14,697.90

Add: Deposits in transit2,530.20

17,228.10

Less: Outstanding checksCheck Number

Check Amount

3451$2,260.40

3470720.10

3471844.50

34721,426.80

34741,056.70

6,308.50

Adjusted cash balance per bank$10,919.60

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

12-13451$2,260.4012-1$2,530.2012-23471844.5012-41,211.6012-734721,426.8012-82,365.1012-434751,640.7012-162,672.7012-834761,300.0012-212,945.0012-1034772,130.0012-262,567.3012-1534793,080.0012-292,836.0012-273480600.0012-301,025.00

12-303482475.50Total$18,152.90

12-2934831,140.0012-313485540.80

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

12-13475$1,640.7012-203482$475.5012-3$1,211.6012-234761,300.0012-2234831,140.0012-72,365.1012-234772,130.0012-233484791.3012-152,672.7012-43478621.3012-243485450.80

12-202,954.0012-834793,080.0012-303486889.50

12-252,567.3012-103480600.00Total$13,926.50

12-282,836.0012-173481807.4012-301,025.0012-311,690.40

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 $579.50 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 $14,315.20, and the cash balance per the bank statement was $22,147.60. 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

$

:

:

$

$

$

:

:

$

$

Prepare the adjusting entries based on the reconciliation.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. For error in check and deposit use accounts payable and accounts receivable.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record collection of note receivable by bank)

Dec. 31

(To record NSF Check)

Dec. 31

(To correct error in recording check)

Dec. 31

(To correct error in deposit)

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