The cash balance per books for wellmeyer company on November 30,2017 The cash ba

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The cash balance per books for wellmeyer company on November 30,2017 The cash balance per books for Wellmeyer Company on November 30, 2017, is $10,740.93. The following checks and receipts were recorded for the month of December 2017 No. Amount No. Amount. 17 $372.96 22 $578.84 18 780.62 23 1,687.50 19 157.00 24 20 587.50 25 21 234.15 - cheeks 541225 oeerts Date $ 843.86 941.54 808.58 1,367.00 12/21 12/27 12/31 921.30 246.03 In addition, the bank statement for the month of December is presented below Balance Last Statement No. Total Amount Checks andDeb Balance No. Total Amount This Statement $5,404.84 5 $9,578.36 10 $3,632.19 $11,351.01 Checks and other debits Deposits Date Balance No. Amount No. Amount No. Amount 12/1 $9,875.13 12/8$9,219.03 14 148.29 17 372.96 22 57884 5,484.38 18 708.62 24 921.30 19 157.00 25 246.03 21 234.15 84386 941.54 12/23 $9,541.58 808.58 12/29 $10,101.01 1,500.00 CM 12/31 $11,351.01 15.00 SC 250.00 NSF Symbols: NSF (Not sufficient funds) SC (Service charge) CM (Credit Memo) Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was Gill, a customer, in settlement of an account receivable. An entry has not been made for theNS The credit memo is for the collection of a note receivable including interest of $60 that has not bec accrued. The bank service charge is $15.00 Instructions (a) Prepare a bank reconciliation at December 31.(Point 14) (b) Prepare the adjusting journal entries required by the bank reconciliation. (Point 11) Solving. IMA Business Economics AnayACPA 88 LegaiRegdlatony Perspective, AICPA FC: Reporting, AICPA PC: Problen

Explanation / Answer

Answer 1. WELLMEYER COMPANY Bank Recocilation Dec 31, 2017 Bank's Cash Balance Company's Cash Balance Per Bank Statement          11,351.01 Per General Ledger         9,136.01 Add: Add: Deposit in Transit -12/31            1,367.00 Proceeds of note collected by bank (Including Interest)             1,500.00 Error in Recording Check No 18                   72.00         1,572.00          12,718.01      10,708.01 Less: Less: Outstanding Checks: Bank Service Charges - Note Collected                (15.00) Chq No 20                (587.50) NSF Check              (250.00)          (265.00) Chq No 23            (1,687.50)          (2,275.00) Bank Balance after Reconcilation          10,443.01 Company Balance per Reconcilation      10,443.01 Answer 2. CHAVEZ COMPANY Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 31-Dec Cash                                                                  Dr.            72.00    To Accounts Payable          72.00 (To correct Recording of Check No 18 ) 31-Dec Cash                                                                 Dr.      1,425.00 Collection Expenses                                 Dr.            15.00    To Notes Receivables    1,440.00    To Intrest Revenue          60.00 (To record note collection less fees) 31-Dec Accounts Receivable                                Dr.          250.00    To Cash       250.00 (To Charge account for NSF check) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors

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