This concept was confusing for me to comprehend and now im having hard time doin
ID: 2368239 • Letter: T
Question
This concept was confusing for me to comprehend and now im having hard time doing this problem. plz help meThe bank portion of the bank reconciliation for Hunsaker Company at October 31, 2010, is shown here.
HUNSAKER COMPANY
Bank Reconciliation
October 31, 2010
Cash balance per bank $12,367.90
Add: Deposits in transit
1,530.20
13,898.10
Less: Outstanding checks
Check Number
Check Amount
2451 $1,260.40
2470 720.10
2471 844.50
2472 426.80
2474
1,050.00
4,301.80
Adjusted cash balance per bank
$9,596.30
The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date Number Amount Date Amount
11-1 2470 $720.10 11-1 $1,530.20
11-2 2471 844.50 11-4 1,211.60
11-5 2474 1,050.00 11-8 990.10
11-4 2475 1,640.70 11-13 2,575.00
11-8 2476 2,830.00 11-18 1,472.70
11-10 2477 600.00 11-21 2,945.00
11-15 2479 1,750.00 11-25 2,567.30
11-18 2480 1,330.00 11-28 1,650.00
11-27 2481 695.40 11-30
1,186.00
11-30 2483 575.50 Total
$16,127.90
11-29 2486
900.00
Total
$12,936.20
The cash records per books for November showed the following.
Cash Payments Journal
Cash Receipts Journal
Date Number Amount Date Number Amount Date Amount
11-1 2475 $1,640.70 11-20 2483 $575.50 11-3 $1,211.60
11-2 2476 2,830.00 11-22 2484 829.50 11-7 990.10
11-2 2477 600.00 11-23 2485 974.80 11-12 2,575.00
11-4 2478 538.20 11-24 2486 900.00 11-17 1,472.70
11-8 2479 1,705.00 11-29 2487 398.00 11-20 2,954.00
11-10 2480 1,330.00 11-30 2488
800.00
11-24 2,567.30
11-15 2481 695.40 Total
$14,429.10
11-27 1,650.00
11-18 2482 612.00 11-29 1,186.00
11-30
1,218.00
Total
$15,824.70
The bank statement contained two memoranda.
1. A credit of $2,242 for the collection of a $2,100 note for Hunsaker Company plus interest of $157 and less a collection fee of $15. Hunsaker Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks $85.
At November 30 the cash balance per books was $10,991.90 and the cash balance per bank statement was $17,716.60. The bank did not make any errors, but two errors were made by Hunsaker Company.
Q. Using the four steps in the reconciliation procedure, complete the bank reconciliation at November 30, 2010
Explanation / Answer
Cash balance per bank statement $17,716.60 Add: Deposits in transit 1,218.00 18,934.60 Less: Outstanding checks 2451 $1,260.40 2472 426.80 2478 538.20 2482 612.00 2484 829.50 2485 974.80 2487 398.00 2488 800.00 5,839.70 Adjusted cash balance per bank $13,094.90 Cash balance per books $10,991.90 Add: Collection of note receivable 2,242.00 13,233.90 Less: Check printing charge $85.00 Error in recording check 45.00 Error in deposit 9.00 139.00 Adjusted cash balance per books $13,094.90 (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. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Account/Description Debit Credit Nov. 30 Cash 2,242.00 Miscellaneous expense 15.00 Notes receivable 2,100.00 Interest revenue 157.00 (To record the collection of note receivable.) Nov. 30 Miscellaneous expense 85.00 Cash 85.00 (To record check printing charge) Nov. 30 Accounts payable 45.00 Cash 45.00 (To record check error) Nov. 30 Accounts receivable 9.00 Cash 9.00 (To record deposit error)