The cash balances per books for the Meson Company on November 30, 2003 and December 31, 2003, are $3,625 and $10,967 respectively. The following checks and receipts were recorded on the books for the month of December 2003:

Checks Receipts

No. Amount No. Amount Amount Date

17 $3,503 22 $ 425 $ 27,300 12/05

18 5,505 23 9,300 15,000 12/21

19 740 24 575 3,200 12/27

20 12,500 25 7,555 2,150 12/31

21 205

In addition, the bank statement for the month of December is presented below:

Balance Deposits and Credits Checks and Debits Balance

Last Statement No. Total Amount No. Total Amount This Statement

$3,231 5 $48,000 11 $42,380 $8,851

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Checks and other debits Deposits Date Balance

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No. Amount No. Amount No. Amount

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14 605 19 740 1,200 12/01 $3,086

18 5,595 24 575 23 9,300 27,300 12/08 $14,916

17 3,503 25 7,555 1,300 12/15 $5,158

20 12,500 1,545 DM 15,000 12/23 $6,113

440 NSF 22 SC 3,200 12/31 $8,851

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Symbols: NSF (Not sufficient funds) SC (Service charge) CM (Credit Memo) DM (Debit Memo)

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All outstanding checks from November cleared the bank in December except for check #15 for $201. Check #18 for equipment was correctly recorded by the bank. The NSF check was from A. Claude, a customer, in settlement of an account receivable. An entry has not been made for the NSF check. Included in the banks deposits is a $1,300 deposit incorrectly credited to the companys account. The deposit should have been posted to the credit of Mason Company. The debit memo is for the collection of a note payable including interest of $45 that has been accrued. The bank service charge is $22.00.

Instructions

(a) Prepare a bank reconciliation at December 31.