The bank section of the bank reconciliation for the Bondar Company at November 30, 2007 was as follows:

. BONDAR COMPANY Bank Reconciliation November 30, 2007

Cash balance per bank $14,367.90 Add: Deposits in transit 2,530.20

16,898.10 Less:Outstanding checks Check NumberCheck Amount 3451$2,260.40 3470720.10 3471844.50 34721,426.80 3474 1,050.00 6,301.80

Adjusted cash balance per bank $10,596.30

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.

CheckDateNumberAmount

12-13451$2,260.40 12-23471844.50 12-734721,426.80 12-434751,640.70 12-834761,300.00 12-1034772,130.00 12-1534793,080.00 12-273480600.00 12-303482475.50 12-2934831,140.00 12-313485540.80 Total$15,438.70 Date Deposit Amount 12-1$2,530.20 12-41,211.60 12-82,365.10 12-162,672.70 12-212,945.00 12-262,567.30 12-292,836.00 12-301,025.00

Total$18,152.90 The cash records per books for December showed the following:

Cash Payments Journal Cash Receipts Journal

DateNumberAmountDateNumberAmountDateAmount 12-13475$1,640.7012-203482$ 475.50 12-3 $1,211.60 12-234761,300.0012-2234831,140.00 12-7 2,365.10 12-234772,130.0012-233484832.00 12-15 2,672.70 12-43478538.2012-243485450.80 12-20' 2,954.00 12-834793,080.0012-3034861,389.5012-25 2,567.30 12-103480600.00Total$14,384.1012-28 2,836.00 12-173481807.4012-30 1,025.00 12-31 1,190.40 Total $16,822.10

The bank statement contained two memoranda:

1.A credit of $2,145 for the collection of a $2,000 note for Bondar Company plus interest of $160 and less a collection fee of $15.00. Bondar Company has not accrued any interest on the note.

2.A debit of $527.10 for an NSF check written by A. Jordan, a customer. At December 31, the check had not been redeposited in the bank.

At December 31 the cash balance per the books was $13,034.30 and the cash balance per the bank statement was $18,700. The bank did not make any errors but two errors were made by Bondar Company.

Instructions

(a) Prepare the bank reconciliation at December 31, 2007

(b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.)

Financial Accounting - Project II. The bank section of the bank reconciliation for the Bondar Company at November 30, 2007 was as follows: . BONDAR COMPANY Bank Reconciliation November 30, 2007 Cash balance per bank Add: Deposits in transit $14,367.90 2,530.20 16,898.10 Less: Outstanding checks Check Number Check Amount 3451 $2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,050.00 6,301.80 Adjusted cash balance per bank $10,596.30 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. 12-1 12-2 12-7 12-4 12-8 12-10 12-15 12-27 12-30 12-29 12-31 Date 12-1 Check Number Amount 3451 3471 3472 3475 3476 3477 3479 3480 3482 3483 3485 $2,260.40 844.50 1,426.80 1,640.70 1,300.00 2,130.00 3,080.00 600.00 475.50 1,140.00 540.80 Total Date $15,438.70 Deposit Amount $2,530.20 12-4 12-8 12-16 12-21 12-26 12-29 12.30 1,211.60 2,365.10 2,672.70 2,945.00 2,567.30 2,836.00 1,025.00 Total $18,152.90 The cash records per books for December showed the following: Cash Payments Journal Date 12-1 12-2 12-2 12-4 12-8 12-10 12-17 Number 3475 3476 3477 3478 3479 3480 3481 Amount $1,640.70 1,300.00 2,130.00 538.20 3,080.00 600.00 807.40 Date 12-20 12-22 12-23 12-24 12-30 Total Cash Receipts Journal Number 3482 3483 3484 3485 3486 Amount $ 475.50 1,140.00 832.00 450.80 1,389.50 $14,384.10 Date Amount 12-3 $1,211.60 12-7 2,365.10 12-15 2,672.70 12-20' 2,954.00 12-25 2,567.30 12-28 2,836.00 12-30 1,025.00 12-31 1,190.40 Total $16,822.10 The bank statement contained two memoranda: 1. A credit of $2,145 for the collection of a $2,000 note for Bondar Company plus interest of $160 and less a collection fee of $15.00. Bondar Company has not accrued any interest on the note. 2. A debit of $527.10 for an NSF check written by A. Jordan, a customer. At December 31, the check had not been redeposited in the bank. At December 31 the cash balance per the books was $13,034.30 and the cash balance per the bank statement was $18,700. The bank did not make any errors but two errors were made by Bondar Company. Instructions (a) Prepare the bank reconciliation at December 31, 2007 (b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.)