The bank portion of the bank reconciliation for Cullumber Company at October 31, 2021, was as follows: CULLUMBER COMPANY Bank Reconciliation October 31, 2021 $11.699 Cash balance per bank Add: Deposits in transit 1,600 13,299 Less: Outstanding cheques #2451 $1,200 970 #2470 897 #2471 463 #2472 1.030 4,560 #2474 $8,739 Adjusted cash balance per bank The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following: CULLUMBER COMPANY Bank Statement November 30, 2021 Cheques and Other Debits Date Number Amount Deposits Amount Oct. 31 $11.699 Nov. 3 2470 $970 $1,600 12,329 4 2471 897 11,432 5 2475 1.641 1.189 10,980 9.950 6 2474 1,030 990 7 2,910 8,030 2476 7.430 10 2477 600 2.575 10,005 13 10 2477 600 7.430 13 2,575 10,005 14 2479 1.750 8,255 18 2480 1,330 1,371 8,296 21 1.833 10,129 25 NSF 280 2,567 12,416 26 2481 695 11.721 27 1,650 13,371 28 2486 900 EFT 2.490 14,961 28 2483 521 1.186 15,626 13,356 30 LN 2,270 Additional information from the bank statement: 107 20 Additional information from the bank statement: 1. 2. The EFT of $2.490 is an electronic transfer from a customer in payment of its account. The amount includes $60 of interest that Cullumber Company had not previously accrued. The NSF for $280 is a $265 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The company's policy is to pass on all NSF service charges to the customer. The LN is a payment of a note payable with the bank and consists of $270 interest and $2,000 principal. At November 30, the cash balance per books was $9.256. The bank did not make any errors. 3. 4. The cash records per books for November follow. Two errors were made by Cullumber Company, Cash Payments Date Number Amount Date Number Amount Nov. 3 2475 $1.641 Nov. 18 2482 $605 3 2476 521 2,190 20 2483 2484 850 4 2477 21 600 4 2477 600 21 2484 850 6 2478 511 24 2485 958 8 2479 1,750 26 2486 900 10 2480 1,330 28 2487 1,160 14 2481 695 Total $13.711 Cash Receipts Date Amount Nov. 3 $1.189 7 990 12 2.575 17 1.371 20 1,388 Nov. 3 $1,189 7 990 12 2,575 17 1,371 20 1,388 24 2,567 27 1.650 28 1,186 30 1.312 Total $14.228 !! Your answer is correct. Prepare a bank reconciliation at November 30. (List items that increase balance as per bank & books first) CULLUMBER COMPANY Bank Reconciliation November 30, 2021 Cash balance per bank statement Add Deposits in transit Less Outstanding cheques 1200 i No. 2451 463 i No 2472 (b) 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 tities 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 for the amounts) Date Account Tities and Explanation Debit Credit Nov. 30 To record receipt from customer & interest earned & to correct error) (To record receipt from customer & interest earned & to correct error) Nov. 30 > > (To record NSF cheque and other cash payments)
