Question
The Hartman Boat Company's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the general
The Hartman Boat Company's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,659 at November 30. Other information is as follows:
A) Cash receipts for November 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement.
B) The bank statement shows a debit memorandum for $40 for check printing charges.
C) The total amount of checks still outstanding at November 30 amounted to $5,800.
D) Check No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.
E) The bank returned an NSF check from a customer for $560.
F) The bank included a credit memorandum for $2,060 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000 and interest was $60. Interest has not been accrued.
Part A
Prepare a bank reconciliation for the Hartman Boat Company at November 30.
Part B
Prepare any adjusting entries necessary as a result of the bank reconciliation.
Part A
Hartman Boat Company
Bank Reconciliation
November 30, 20xx
Cash balance per bank statement |
| $7,000 |
Add: Cash receipts not recorded by bank |
|
|
|
|
|
|
|
|
Less: Outstanding checks |
|
|
|
|
|
Adjusted cash balance per bank |
|
|
|
|
|
|
|
|
Cash balance per books |
| $5,659 |
Add: Error in recording check No. 138 |
|
|
Collection of $2,000 note and $60 interest revenue |
|
|
|
|
|
|
|
|
Less: Check printing charges |
|
|
NSF check |
|
|
|
|
|
|
|
|
Adjusted cash balance per books |
| $7,200 |
Part B
Adjusting entries:
Date | Account title | Debit | Credit |
Nov. 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Submitted it, and did it wrong. Was given the oppotunity to redo it, but don't quite understand.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started