The bank portion of the bank reconciliation for Sandra Company at November 30, 1996, was as follows:

The December bank statement showed the following checks and deposits:

The cash records per books for December showed the following:

The bank statement contained two memoranda:
\(w^{\circ} 1\). A credit of \(\$ 2,145\) for the collection of a \(\$ 2,000\) note for Sandra Company plus interest of \(\$ 160\) and less a collection fee of \(\$ 15.00\). Sandra Company has not accrued any inter-
\(y^{3}\) est on the note.
2. A debit of \(\$ 547.10\) for an NSF check written by A. Jordan, a customer. At December 31 , the check had not been redeposited in the bank.
ne At December 31 the cash balance per books was \(\$ 13,034.30\), and the cash balance per the bank statement was \(\$ 18,680.00\). The bank did not make any errors, but two errors were made by Sandra Company.
\section*{Instructions}

(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31 .

(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.)

Transcribed Image Text:

Cash balance per bank Add: Deposits in transit SANDRA COMPANY Bank Reconciliation November 30, 1996 $14,367.90 2,530.20 16,898.10 Less: Outstanding checks Check Number 3451 3470 3471 3472 3474 Adjusted cash balance per bank Check Amount $2,260.40 720.10 844.50 1,426.80 1,050.00- pa bank 6,301.80 $10,596.30