Exercise 202 The Hartman Boat Company\'s bank statement for the month of Novembe

Question

Exercise 202 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 accounting records had a balance of $5,659 at November 30. Other information is as follows: (1) Cash receipts for November 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for check printing charges. (3) Check No. 119 payable to Maris Company was recorded in the cash payments record and cleared the bank for $248. A review of the accounts payable record shows a $36 balance in the account of Maris Company and that the payment to them should have been for $284 (4) The tota amount of checks still outstanding at November 30 amounted to $5,800 (5) Check No. 138 was correctly written and paid by the bank for $409. The cash payment record reflects for the recording of Check No. 138 as a debit to Accounts Payable and a (6) (7) decrease to Cash in Bank for $490 The bank returned an NSF check from a customer for $560 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

Explanation / Answer

Bank Reconciliation Statement Balance as per Bank Statement 7000 Add: Deposits in transit 6000 13000 Less: Outstanding checks 5800 Adjusted balance in Bank Statement 7200 Balance as per Books 5659 Add: Error in recording check 81 Add: Collection of notes receivable 2060 7800 Less: Check printing charges 40 Less: NSF check 560 Adjusted balance as per books 7200 Journal entries Date Acccounts title and explanations Debit $ Credit $ 30-Nov Cash Account Dr. 81     Accounts payable 81 30-Nov Cash Account Dr. 2060     Notes receivable Account 2000      Interest revennue 60 30-Nov Misc expense Account Ddr. 40     Cash account 40 30-Nov Accounts receivable Account Ddr. 560       Cash account 560

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