The adjusted cash balance per bank agreed with the cash balance per books at Oct
ID: 2582732 • Letter: T
Question
The adjusted cash balance per bank agreed with the cash balance per books at October 31st.
The November bank statement showed the following checks and deposits.
The cash records per books for November show the following information:
The bank statement contained two bank memoranda:
1. A credit of $2,105.00 for the collection of a $2,000 note for Louda Company plus interest of $120 and less a collection fee of $15.
Louda Company accrued interest to the maturity of the note.
2. A debit for the printing of additional company checks, $50.00.
At November 30 the cash balance per books was $11,133.90 and the cash balance per the bank statement was $17,614.60.
The bank did not make any errors but two errors were made by Louda Company.
Instructions:
(a) Prepare the bank reconciliation at November 30, 2017
(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.)
LOUDA COMPANY Bank Reconciliation October 31,2017 Cash balance per bank Add: Deposits in transit $12,367.90 1,530.20 13,898.10 Less:Outstanding checks Check Number Check Amount 2451S1,260.40 720.10 844.50 426.80 1,050.00 2470 2471 2472 2474 4,301.80 Adjusted cash balance per bank 9,596.30Explanation / Answer
(A)
Bank reconcilation for November
Cash balance as per bank
17614.60
Add:
Deposits in transit
1225.00
Printing checks amount
50.00
1275.00
Less:
Outstanding checks
Check Number
Check Amount
2451
1260.40
2472
426.80
2478
538.20
2482
612.00
2484
829.50
2485
974.80
2487
398.00
2488
800.00
5839.70
Less:
Credit note
2105.00
Wrongly posted entries
Add:
Cash deposit on 11/20 as per books
2954.00
Less: Cash deposit on 11/20 in bank
2945.00
9.00
Check no. 2479 as per bank
1750.00
Less: Check no. 2479 as per books
1570.00
180.00
Adjusted cash balance per bank
11133.90
(B) Journal Entries
PARTICULARS
DEBIT AMOUNT
CREDIT AMOUNT
Accounts Receivable
9.00
To Cash
9.00
(Being excess amount recorded on 11/20 debited back to accounts receivable ($ 2954 - $ 2945)
180.00
Accounts Payable
180.00
To Cash
(Being deficit amount recorded for Check no. 2479 paid on 11/8 debited to accounts payable. ($1750 - $1570)
(A)
Bank reconcilation for November
Cash balance as per bank
17614.60
Add:
Deposits in transit
1225.00
Printing checks amount
50.00
1275.00
Less:
Outstanding checks
Check Number
Check Amount
2451
1260.40
2472
426.80
2478
538.20
2482
612.00
2484
829.50
2485
974.80
2487
398.00
2488
800.00
5839.70
Less:
Credit note
2105.00
Wrongly posted entries
Add:
Cash deposit on 11/20 as per books
2954.00
Less: Cash deposit on 11/20 in bank
2945.00
9.00
Check no. 2479 as per bank
1750.00
Less: Check no. 2479 as per books
1570.00
180.00
Adjusted cash balance per bank
11133.90
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