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Problem 7-4A The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown below. HORSMAN COMPANY Bank Reconciliation October 31,

Problem 7-4A

The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown below.

HORSMAN COMPANY

Bank Reconciliation

October 31, 2012

Cash balance per bank

$12,837.03

Add: Deposits in transit

1,530.20

Less: Outstanding checks

14,367.23

Check Number

Check Amount

2451

$1,260.40

2470

684.20

2471

844.50

2472

429.88

2474

1,050.00

4,268.98

Adjusted cash balance per bank

$10,098.25

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

$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

1,730.00

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

$12,920.30

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

826.42

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

1,703.00

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

$14,464.02

11-27

1,650.00

11-18

2482

612.00

11-29

1,186.00

11-30

1,773.13

Total

$16,379.83

The bank statement contained two bank memoranda:

1.

A credit of $2,380.26for the collection of a $2,238.26note for Horsman Company plus interest of $157.00and less a collection fee of $15.00. Horsman Company has not accrued any interest on the note.

2.

A debit for the printing of additional company checks $88.08.

At November 30, the cash balance per books was $12,014.06and the cash balance per bank statement was $18,336.81. The bank did not make any errors, but Horsman Company made two errors.

(a) Prepare a bank reconciliation at November 30, 2012.

(b) Prepare the adjusting entries based on the reconciliation. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

(To record collection of note receivable by bank)

2.

(To record charge for printing company checks)

3.

(To correct error in recording check)

5.

(To correct error in deposit)

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