Financial Accounting – Project II.
The bank section of the bank reconciliation for the Bondar Company at November 30, 2007 was as follows:
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BONDAR COMPANY
Bank Reconciliation
November 30, 2007
Cash balance per bank $14,367.90
Add: Deposits in transit 2,530.20
16,898.10
Less: Outstanding checks
Check Number Check Amount
3451 $2,260.40
3470 720.10
3471 844.50
3472 1,426.80
3474 1,050.00 6,301.80
Adjusted cash balance per bank $10,596.30
The adjusted cash balance per bank agreed with the cash balance per books at November 30.
The December bank statement showed the following checks and deposits.
Check Date Number Amount
12-1 3451 $2,260.40
12-2 3471 844.50
12-7 3472 1,426.80
12-4 3475 1,640.70
12-8 3476 1,300.00
12-10 3477 2,130.00
12-15 3479 3,080.00
12-27 3480 600.00
12-30 3482 475.50
12-29 3483 1,140.00
12-31 3485 540.80
Total $15,438.70
Date Deposit Amount
12-1 $2,530.20
12-4 1,211.60
12-8 2,365.10
12-16 2,672.70
12-21 2,945.00
12-26 2,567.30
12-29 2,836.00
1,025.00
Total $18,152.90
The cash records per books for December showed the following:
Cash Payments Journal Cash Receipts Journal
Date Number Amount Date Number Amount Date Amount
12-1 3475 $1,640.70 12-20 3482 $ 475.50 12-3 $1,211.60
12-2 3476 1,300.00 12-22 3483 1,140.00 12-7 2,365.10
12-2 3477 2,130.00 12-23 3484 832.00 12-15 2,672.70
12-4 3478 538.20 12-24 3485 450.80 12-20′ 2,954.00
12-8 3479 3,080.00 12-30 3486 1,389.50 12-25 2,567.30
12-10 3480 600.00 Total $14,384.10 12-28 2,836.00
12-17 3481 807.40 12-30 1,025.00
12-31 1,190.40
Total $16,822.10
The bank statement contained two memoranda:
A credit of $2,145 for the collection of a $2,000 note for Bondar Company plus interest of $160 and less a collection fee of $15.00. Bondar Company has not accrued any interest on the note.
2. A debit of $527.10 for an NSF check written by A. Jordan, a customer. At December 31, the check had not been redeposited in the bank.
At December 31 the cash balance per the books was $13,034.30 and the cash balance per the bank statement was $18,700.
The bank did not make any errors but two errors were made by Bondar Company.
Instructions
(a) Prepare the bank reconciliation at December 31, 2007
(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.)
