Problem 7-8A The bank portion of last month's bank reconciliation for Carla Vista Limited at October 31 is shown here: CARLA VISTA LIMITED Bank Reconciliation October 31 Cash balance per bank Add: Deposits in transit $25,030 2,775 27,805 Less: Outstanding cheques #2472 #2473 #2474 $1,380 1,610 1,027 4,017 Reconciled cash balance $23,788 The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at October 31. The November bank statement showed the following: CARLA VISTA LIMITED Bank Statement November 30 Amounts Deducted from Amounts Added to Account Description Account (Debits) (Credits) Balance 25,030 23,650 2,77526,425 24,815 2,426 27,241 24,062 2,110 26,172 20,572 19,572 Date Oct. 31 Nov. 1 Cheque, No. 2472 1,380 1 Deposit 2 Cheque, No. 2473 3 Deposit 4 Cheque, No. 2475 7 Deposit 8 Cheque, No. 2476 1,610 3,179 5,600 10 Cheque, No. 2477 1,000 14 Deposi 15 Cheque, No. 2478 15 EFT, salaries 20 Deposit 25 Returned cheque-NSF, Giasson Developments 25 NSF fee 26 Cheque, No. 2479 5,670 25,242 21,642 15,342 5,89021,232 20,632 20,624 19,224 3,500 22,724 5,497 28,221 27,033 20,733 20,728 3,600 6,300 600 8 1,400 Deposit 28 EFT, collection of note receivable and interest 30 Cheque, No. 2481 30 EFT, salaries 30 Bank service charges 1,188 6,300 The cash records per books for November showed the following Cash Receipts Cash Payments Date Amount Date Number Amount 2475 3,179 4,700 1,000 3,600 1,400 6,300 1,216 1,188 1,650 6,300 $30,533 Nov. 3 7 12 20 27 30 2,110 5,670 5,908 3,500 807 $20,421 $2,426 Nov. 1 2 2 8 15 2476 2477 2478 2479 15 EFT, salaries 2480 2481 2482 30 EFT, salaries 18 20 29 Additional information: 1. The EFT collection was not previously recorded. The collection of the note on November 28 was for $4,900, plus $597 interest. Interest was not previously accrued. 2. EFT payments are recorded when they occur. 3. The bank did not make any errors. 4 Two errors were made by the company: one in recording a cheque and one in recording a cash receipt. The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable Calculate the cash balance per books as at November 30, prior to reconciliation. Cash balance per books Prepare the bank reconciliation at November 30. (List items that increase balance as per bank & books first.) CARLA VISTA LIMITED Bank Reconciliation November 30 Prepare any journal entries required from the reconciliation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Nov. 30 (To record EFT collections) 30 (To record bank charges) 30 (To record NSF cheque and fee) 30 (To correct error in recording cheque No. 2476) 30 (To correct error in Nov. 20 deposit)