Requirements:

(1) Prepare a bank reconciliation in good format using Word or Excel (you can copy the excel document I posted in the class lecture materials),

(2) Prepare adjusting entries,

(3) Post adjusting entries to a Cash ledger t-account (start with Nov 30 balance) to be sure your adjusted cash balance in the ledger agrees to what you report in the Bank Reconciliation.

The bank portion of the bank reconciliation at October 31, 2019 is:

Morgan Company

Bank Reconciliation

October 31, 2019

Cash balance per bank $12,367.90

Add: Deposits in transit 1,530.20

Less: Outstanding checks

Check Number Check Amount

2451 $1,260.40

2470 684.20

2471 844.50

2472 426.80

2474 1,050.00 4,265.90

Adjusted cash balance per bank $ 9,632.20

The adjusted cash balance per bank agreed with the cash balance per books at October 31. The books side of the reconciliation was completed by recording adjusting entries to the books. The bank side of the reconciliation is completed the next month by comparing the reconciling items to the following months bank statement to see if the items are still outstanding. If they are still outstanding (not received by the bank), they are recorded in the next months reconciliation. If they are no longer outstanding (recorded in the following months bank statement) you do not need to record them on the reconciliation. Remember, these items were already recorded in the books when created (deposits and checks), they cause differences in the cash balances until received by the bank (recorded on the bank side of the reconciliation).

At November 30, the cash balance per books was $11,073.80and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Morgan Company made two errors.

The cash records in the books for November showed the following: Cash Payments Journal Cash Receipts Journal Number Number Date Amount Date Amount Date Amount $ S 11-3 1,211.60 11-1 2475 1,640.70 11-18 2482 612.00 990.10 2476 11-20 2483 575.50 11-7 11-2 2,830.00 11-12 2,575.00 11-2 2477 600.00 11-22 2484 829.50 2478 1,472.70 11-4 538.20 11-23 2485 974.80 11-17 11-20 2,954.00 11-8 11-24 2486 2479 1,705.00 940.00 1,330.00 11-24 2,567.30 11-10 2480 11-29 2487 398.00 1,650.00 11-30 2488 11-27 11-15 2481 695.40 800.00 1,186.00 11-29 11-30 1,304.00 The November bank statement showed the following items: Bank Statement Checks/Debits Deposits/Credits Amount $ 1,530.20 Number Date Amount Date 11-1 2470 684.20 11-1 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 11-10 BC 2,242.00 11-8 2476 2,830.00 11-13 2,575.00 2477 600.00 11-10 11-18 1,472.70 11-15 2479 11-21 2,945.00 1,750.00 11-18 2480 1,330.00 11-25 2,567.30 11-20 NSF 50.00 11-28 1,650.00 11-27 2481 695.40 11-30 1,186.00 11-30 2483 575.50 11-29 2486 940.00 35.00 11-30 SC BC of $2,242 for the collection of a $2,100 note for Morgan Company prus interest of $157 less a collection fee of $15 SC for check printing fee