Problem 7-4A

The bank portion of the bank reconciliation for Blossom Company at October 31, 2017, is shown below.

BLOSSOM COMPANY Bank Reconciliation October 31, 2017
Cash balance per bank				$12,467.90
Add: Deposits in transit				1,530.20
				13,998.10
Less: Outstanding checks
Check Number		Check Amount
2451		$ 1,260.40
2470		684.20
2471		844.50
2472		427.80
2474		1,050.00		4,266.90
Adjusted cash balance per bank				$9,731.20

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		1,720.00		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		$12,910.30

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		828.50		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		1,702.00		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				$14,465.10		11-27		1,650.00
11-18		2482		612.00								11-29		1,186.00
												11-30		1,404.00
												Total		$16,010.70

The bank statement contained two bank memoranda:

1.		A credit of $2,342.00 for the collection for Blossom Company of an electronic funds transfer.
2.		A debit for the printing of additional company checks $86.00.

At November 30, the cash balance per books was $11,276.80 and the cash balance per bank statement was $17,941.50. The bank did not make any errors, but Blossom Company made two errors.

Using the steps in the reconciliation procedure, prepare a bank reconciliation at November 30, 2017. (List items that increase balance as per bank and books first.)

BLOSSOM COMPANY Bank Reconciliation choose the accounting period For the Year Ended November 30, 2017For the Month Ended November 30, 2017November 30, 2017
select an opening name for section one Adjusted cash balance per bankCash balance per bank statementOutstanding checksError in recording checkElectronic funds transfer receivedDeposits in transitCheck printing chargeError in deposit					$enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item Cash balance per bank statementError in depositElectronic funds transfer receivedCheck printing chargeDeposits in transitError in recording checkAdjusted cash balance per bankOutstanding checks				enter a dollar amount

Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)