LAROCHE COMPANY Bank Reconciliation October 31, 2014 $12,367.90 1,530.20 13,898.
ID: 2491511 • Letter: L
Question
LAROCHE COMPANY
Bank Reconciliation
October 31, 2014
$12,367.90
1,530.20
13,898.10
Check Number
Check Amount
$ 1,260.40
684.20
844.50
426.80
1,050.00
4,265.90
$9,632.20
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
1,186.00
16,127.90
940.00
$12,940.30
Cash Payments Journal
Cash Receipts Journal
Date
Number
Amount
Date
Number
Amount
Date
Amount
800.00
$14,469.10
1,304.00
$15,910.70
A) Using the four steps in the reconilation procedure described on page 355, prepare a bank reconillation at November 30,2014.
B) Prepare the adjusting entries based on the reconilation. ( 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.)
Problem 7-4A (Part Level Submission) The bank portion of the bank reconciliation for LaRoche Company at October 31, 2014, is shown below.LAROCHE COMPANY
Bank Reconciliation
October 31, 2014
$12,367.90
Add: Deposits in transit1,530.20
Less: Outstanding checks13,898.10
Check Number
Check Amount
2451$ 1,260.40
2470684.20
2471844.50
2472426.80
24741,050.00
4,265.90
Adjusted cash balance per bank$9,632.20
The adjusted cash balance per bank agreed with the cash Cash balance per books at October 31. The November bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
11-1 2470 $ 684.20 11-1 $ 1,530.20 11-2 2471 844.50 11-4 1,211.60 11-5 2474 1,050.00 11-8 990.10 11-4 2475 1,640.70 11-13 2,575.00 11-8 2476 2,830.00 11-18 1,472.70 11-10 2477 600.00 11-21 2,945.00 11-15 2479 1,750.00 11-25 2,567.30 11-18 2480 1,330.00 11-28 1,650.00 11-27 2481 695.40 11-301,186.00
11-30 2483 575.50 Total16,127.90
11-29 2486940.00
Total$12,940.30
The cash records per books for November showed the following.
Cash Payments Journal
Cash Receipts Journal
Date
Number
Amount
Date
Number
Amount
Date
Amount
11-1 2475 $1,640.70 11-20 2483 $ 575.50 11-3 $ 1,211.60 11-2 2476 2,830.00 11-22 2484 829.50 11-7 990.10 11-2 2477 600.00 11-23 2485 974.80 11-12 2,575.00 11-4 2478 538.20 11-24 2486 940.00 11-17 1,472.70 11-8 2479 1,705.00 11-29 2487 398.00 11-20 2,954.00 11-10 2480 1,330.00 11-30 2488800.00
11-24 2,567.30 11-15 2481 695.40 Total$14,469.10
11-27 1,650.00 11-18 2482 612.00 11-29 1,186.00 11-301,304.00
Total$15,910.70
The bank statement contained two bank memoranda:
1. A credit of $2,242.00 for the collection of a $2,100 note for LaRoche Company plus interest of $157 and less a collection fee of $15. LaRoche Company has not accrued any interest on the note. 2. A debit for the printing of additional company checks $85.00.
At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but LaRoche Company made two errors.
A) Using the four steps in the reconilation procedure described on page 355, prepare a bank reconillation at November 30,2014.
B) Prepare the adjusting entries based on the reconilation. ( 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.)
Explanation / Answer
Bank reconciliation as on 30th November A) Bank reconciliation as on November 30, 2014 Cash balance per books 11073.8 Less deposit in transit 1304 Bank charges 85 Incorrect recording of check 2479 45 Incorrect recording of deposit 20/11 9 collection fee 15 1458 Add cheques issued not cleared 2451 1260.4 2472 426.8 2478 538.2 2482 612 2484 829.5 2485 974.8 2487 398 2488 800 5839.7 collection of note 2100 interest on note 157 2257 8096.7 Cash balance per bank 17712.5 B) Bank charges Dr 100 Cash Cr 100 ( To record charges levied by bank 85 + 15) Accounts payable Dr 45 Cash Cr 45 ( To reord rectification of incorrect check ) Acconts receivable Dr 9 Cash Cr 9 ( To reord rectification of incorrect deposit ) Cash Dr 2257 Notes Receivable Cr 2100 Interest Income Cr 157 ( To record collection of note with interest)
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