P8-4A, P.374/375 Book. Financial Accounting Ed.6
The bank portion of the bank reconciliation for Backhaus Company at November 30,
2008, was as follows.
374 Chapter 8 Internal Control and Cash
BACKHAUS COMPANY
Bank Reconciliation
November 30, 2008
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
Journalize and post petty cash fund transactions.
(a) July 15, Cash short $1.80
(b) Aug. 31 balance $300
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.
Bank Statement
Checks – Deposits
Date Number Amount – Date Amount
12-1 3451 $ 2,260.40 12-1 $ 2,530.20
12-2 3471 844.50 12-4 1,211.60
12-7 3472 1,426.80 12-8 2,365.10
12-4 3475 1,640.70 12-16 2,672.70
12-8 3476 1,300.00 12-21 2,945.00
12-10 3477 2,130.00 12-26 2,567.30
12-15 3479 3,080.00 12-29 2,836.00
12-27 3480 600.00 12-30 1,025.00
12-30 3482 475.50 Total $18,152.90
12-29 3483 1,140.00
12-31 3485 540.80
Total $15,438.70
Cash Payments Journal
Date Number Amount Date Number Amount
12-1 3475 $1,640.70 12-20 3482 $ 475.50
12-2 3476 1,300.00 12-22 3483 1,140.00
12-2 3477 2,130.00 12-23 3484 798.00
12-4 3478 621.30 12-24 3485 450.80
12-8 3479 3,080.00 12-30 3486 1,889.50
12-10 3480 600.00 Total $14,933.20
12-17 3481 807.40
Cash Receipts
Journal
Date Amount
12-3 $ 1,211.60
12-7 2,365.10
12-15 2,672.70
12-20 2,954.00
12-25 2,567.30
12-28 2,836.00
12-30 1,025.00
12-31 1,690.40
Total $17,322.10
The cash records per books for December showed the following.
The bank statement contained two memoranda:
1. A credit of $4,145 for the collection of a $4,000 note for Backhaus Company plus interest of
$160 and less a collection fee of $15. Backhaus Company has not accrued any interest on the
note.
2. A debit of $572.80 for an NSF check written by D. Chagnon, a customer.At December 31, the
check had not been redeposited in the bank.
At December 31 the cash balance per books was $12,985.20, and the cash balance per the bank
statement was $20,654.30. The bank did not make any errors, but two errors were made by
Backhaus Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at
December 31.
(b) Prepare the adjusting entries based on the reconciliation. (Hint: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.)
2008, was as follows.
374 Chapter 8 Internal Control and Cash
BACKHAUS COMPANY
Bank Reconciliation
November 30, 2008
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
Journalize and post petty cash fund transactions.
(a) July 15, Cash short $1.80
(b) Aug. 31 balance $300
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.
Bank Statement
Checks – Deposits
Date Number Amount – Date Amount
12-1 3451 $ 2,260.40 12-1 $ 2,530.20
12-2 3471 844.50 12-4 1,211.60
12-7 3472 1,426.80 12-8 2,365.10
12-4 3475 1,640.70 12-16 2,672.70
12-8 3476 1,300.00 12-21 2,945.00
12-10 3477 2,130.00 12-26 2,567.30
12-15 3479 3,080.00 12-29 2,836.00
12-27 3480 600.00 12-30 1,025.00
12-30 3482 475.50 Total $18,152.90
12-29 3483 1,140.00
12-31 3485 540.80
Total $15,438.70
Cash Payments Journal
Date Number Amount Date Number Amount
12-1 3475 $1,640.70 12-20 3482 $ 475.50
12-2 3476 1,300.00 12-22 3483 1,140.00
12-2 3477 2,130.00 12-23 3484 798.00
12-4 3478 621.30 12-24 3485 450.80
12-8 3479 3,080.00 12-30 3486 1,889.50
12-10 3480 600.00 Total $14,933.20
12-17 3481 807.40
Cash Receipts
Journal
Date Amount
12-3 $ 1,211.60
12-7 2,365.10
12-15 2,672.70
12-20 2,954.00
12-25 2,567.30
12-28 2,836.00
12-30 1,025.00
12-31 1,690.40
Total $17,322.10
The cash records per books for December showed the following.
The bank statement contained two memoranda:
1. A credit of $4,145 for the collection of a $4,000 note for Backhaus Company plus interest of
$160 and less a collection fee of $15. Backhaus Company has not accrued any interest on the
note.
2. A debit of $572.80 for an NSF check written by D. Chagnon, a customer.At December 31, the
check had not been redeposited in the bank.
At December 31 the cash balance per books was $12,985.20, and the cash balance per the bank
statement was $20,654.30. The bank did not make any errors, but two errors were made by
Backhaus Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at
December 31.
(b) Prepare the adjusting entries based on the reconciliation. (Hint: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.)
