Question
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
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 | $14,657.90 | |||
Add: Deposits in transit | 2,530.20 | |||
17,188.10 | ||||
Less: Outstanding checks | ||||
Check Number | Check Amount | |||
3451 | $ 2,260.40 | |||
3470 | 720.10 | |||
3471 | 844.50 | |||
3472 | 1,426.80 | |||
3474 | 1,057.90 | 6,309.70 | ||
Adjusted cash balance per bank | $10,878.40 |
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 | 790.10 | 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 | $13,925.30 | 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 $5,295 for the collection of a $5,150 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 $580.70 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 $14,275.20, and the cash balance per the bank statement was $22,086.40. The bank did not make any errors, but two errors were made by Langer Company.
A: Prepare the adjusting entries based on 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.)
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