Question
The bank portion of the bank reconciliation for Blossom Company at October 31, 2021, was as follows: BLOSSOM COMPANY Bank Reconciliation October 31, 2021 Cash
The bank portion of the bank reconciliation for Blossom Company at October 31, 2021, was as follows:
BLOSSOM COMPANY Bank Reconciliation October 31, 2021 | ||||
Cash balance per bank | $11,000 | |||
Add: Deposits in transit | 1,500 | |||
12,500 | ||||
Less: Outstanding cheques | ||||
#2451 | $1,100 | |||
#2470 | 850 | |||
#2471 | 780 | |||
#2472 | 450 | |||
#2474 | 1,000 | 4,180 | ||
Adjusted cash balance per bank | $8,320 |
The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following:
BLOSSOM COMPANY Bank Statement November 30, 2021 | ||||||||||||
Cheques and Other Debits | ||||||||||||
Date | Number | Amount | Deposits | Amount | ||||||||
Oct. 31 | $11,000 | |||||||||||
Nov. 3 | 2470 | $850 | $1,500 | 11,650 | ||||||||
4 | 2471 | 780 | 10,870 | |||||||||
5 | 2475 | 1,641 | 1,150 | 10,379 | ||||||||
6 | 2474 | 1,000 | 9,379 | |||||||||
7 | 2476 | 1,620 | 990 | 8,749 | ||||||||
10 | 2477 | 600 | 8,149 | |||||||||
13 | 2,575 | 10,724 | ||||||||||
14 | 2479 | 1,750 | 8,974 | |||||||||
18 | 2480 | 1,330 | 1,350 | 8,994 | ||||||||
21 | 1,722 | 10,716 | ||||||||||
25 | NSF | 220 | 2,567 | 13,063 | ||||||||
26 | 2481 | 695 | 12,368 | |||||||||
27 | 1,650 | 14,018 | ||||||||||
28 | 2486 | 900 | EFT 2,440 | 15,558 | ||||||||
28 | 2483 | 500 | 1,186 | 16,244 | ||||||||
30 | LN | 2,210 | 14,034 |
Additional information from the bank statement:
1. | The EFT of $2,440 is an electronic transfer from a customer in payment of its account. The amount includes $10 of interest that Blossom Company had not previously accrued. | |
2. | The NSF for $220 is a $205 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The companys policy is to pass on all NSF service charges to the customer. | |
3. | The LN is a payment of a note payable with the bank and consists of $210 interest and $2,000 principal. | |
4. | At November 30, the cash balance per books was $9,799. The bank did not make any errors. |
The cash records per books for November follow. Two errors were made by Blossom Company.
Cash Payments | |||||||||||||||
Date | Number | Amount | Date | Number | Amount | ||||||||||
Nov. 3 | 2475 | $1,641 | Nov. 18 | 2482 | $590 | ||||||||||
3 | 2476 | 1,260 | 20 | 2483 | 500 | ||||||||||
4 | 2477 | 600 | 21 | 2484 | 800 | ||||||||||
6 | 2478 | 500 | 24 | 2485 | 900 | ||||||||||
8 | 2479 | 1,750 | 26 | 2486 | 900 | ||||||||||
10 | 2480 | 1,330 | 28 | 2487 | 1,100 | ||||||||||
14 | 2481 | 695 | Total | $12,566 |
Cash Receipts | |||
Date | Amount | ||
Nov. 3 | $1,150 | ||
7 | 990 | ||
12 | 2,575 | ||
17 | 1,350 | ||
20 | 1,277 | ||
24 | 2,567 | ||
27 | 1,650 | ||
28 | 1,186 | ||
30 | 1,300 | ||
Total | $14,045 |
1 Prepare a bank reconciliation at November 30. (List items that increase balance as per bank & books first.)
2 Prepare the necessary adjusting entries at November 30. (Note: 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.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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