Presented below is information related to Simalan Dive Company. The balance acco

Question

Presented below is information related to Simalan Dive Company. The balance according to the books at October 31, 2017, was $99,658.29; cash receipts recorded during November were $64,810.69; and cash disbursements recorded for November were $76,859.30. The balance according to the bank statement on November 30, 2017, was $82,373.68.

The following cheques were outstanding at November 30:

Included with the November bank statement and not recorded by the company were a bank debit memo for $35.26 covering bank charges for the month, a debit memo for $5,203.75 for a customer’s cheque (Marnie Wiesen) returned and marked NSF, and a credit memo for $618.32 representing interest collected by the bank for Simalan Dive Company. Cash on hand at November 30, which has been recorded and is awaiting deposit, amounted to $7,214.10.

Required:
a. Prepare a bank reconciliation at November 30, 2017. (Round your answers to 2 decimal places.)

Cheque #920 #991 #1030 #1064 Amount 950.29 2,846.50 ,974.34 827.66

Explanation / Answer

a. Bank reconciliation at November 30, 2017 is as prepared below:

b. Journal entries

SIMALAN DIVE COMPANY Bank Reconciliation November 30, 2017 Bank's cash balance Company's cash balance Bank Statement balance 82,373.68 Book balance (99,658.29+64,810.69-76,859.3) 87,609.68 Add: Deposit in transit 7,214.10 Less: bank Service fees -35.26 Less: Outstanding checks Less: NSF Check -5,203.75 920 950.29 991 2,846.50 1030 1,974.34 1064 827.66 Add: Interest collected by bank 618.32 Adjusted Bank Balance 82,988.99 Adjusted book balance 82,988.99

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