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 $14,367.90 Add: Deposits in transit 2,530.20 16,898.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,050.00 6,301.80 Adjusted cash balance per bank $10,596.30

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 798.00 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 $13,933.20 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 $5,145 for the collection of a $5,000 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 $572.80 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 $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Langer Company.

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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 Outstanding checks Error in recording check Cash balance per books Adjusted cash balance per bank Adjusted cash balance per books Cash balance per bank statement Deposits in transit Note collected by bank Error in deposit NSF check $ Less Add : Cash balance per bank statement Adjusted cash balance per bank Note collected by bank Error in deposit Deposits in transit Cash balance per books Error in recording check Outstanding checks Adjusted cash balance per books NSF check Add Less : Cash balance per books Adjusted cash balance per books NSF check Note collected by bank Error in recording check Deposits in transit Outstanding checks Error in deposit Cash balance per bank statement Adjusted cash balance per bank No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 $ No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 No. 3451 No. 3470 No. 3471 No. 3472 No. 3474 No. 3475 No. 3476 No. 3477 No. 3478 No. 3479 No. 3480 No. 3481 No. 3482 No. 3483 No. 3484 No. 3485 No. 3486 Note collected by bank Deposits in transit Outstanding checks NSF check Error in recording check Error in deposit Cash balance per bank statement Adjusted cash balance per bank Cash balance per books Adjusted cash balance per books $ Adjusted cash balance per books Adjusted cash balance per bank Deposits in transit Cash balance per bank statement Outstanding checks Note collected by bank Error in recording check NSF check Error in deposit Cash balance per books $ Add Less : Cash balance per bank statement Deposits in transit Outstanding checks Adjusted cash balance per bank Cash balance per books Note collected by bank Adjusted cash balance per books NSF check Error in recording check Error in deposit Less Add : Outstanding checks NSF check Error in deposit Note collected by bank Error in recording check Deposits in transit Cash balance per books Adjusted cash balance per books Cash balance per bank statement Adjusted cash balance per bank $ NSF check Error in recording check Deposits in transit Cash balance per books Note collected by bank Error in deposit Outstanding checks Adjusted cash balance per books Adjusted cash balance per bank Cash balance per bank statement Note collected by bank Cash balance per books Adjusted cash balance per bank Adjusted cash balance per books Deposits in transit Outstanding checks Cash balance per bank statement NSF check Error in recording check Error in deposit Adjusted cash balance per books Adjusted cash balance per bank Cash balance per bank statement Deposits in transit Outstanding checks Note collected by bank NSF check Error in recording check Error in deposit Cash balance per books $

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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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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 $14,367.90 Add: Deposits in transit 2,530.20 16,898.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,050.00 6,301.80 Adjusted cash balance per bank $10,596.30 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 798.00 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 $13,933.20 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 $5,145 for the collection of a $5,000 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 $572.80 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 $12,485.20, and the cash balance per the bank statement was $20,154.30. 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 $ : : $ $ $ : : $ $ 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)