Prepare a bank reconciliation using the information below. The cash account for
ID: 2583316 • Letter: P
Question
Prepare a bank reconciliation using the information below.
The cash account for Collegiate Sports Co. on November 1, 2016, indicated a balance of $81,145. During November, the total cash deposited was $305,450, and checks written totaled $307,360. The bank statement indicated a balance of $137,175 on November 30, 2016.
a. Checks outstanding totaled $41,840.
b. A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.
c. A check for $7,250 had been incorrectly charged by the bank as $2,750.
d. A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account.
e. The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection.
f. Bank service charges for November amounted to $125.
g. The bank erroneously charged a check drawn by Smith Co. in the amount of $100 to Collegiate Co.
h. A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.
i. Checks from September that have not yet cleared the bank totaled $10,110.
j. The bank reported a credit of $320 for interest on the average balance.
k. An ATM withdrawal of $150 on November 18 by Collegiate Sports Co. for personal use was not recorded on the books.
l. The bank erroneously credited Collegiate Sports Co. with a deposit made by Grant Co. in the amount of $2,020.
Explanation / Answer
COLLECGATE SPORTS COMPANY Bank reconciliation statement for November , 2016 Balace as per bank 137175 Balance as per books * 79235 Additions: Additions: b. Deposit dated Nov.30 12200 a. Checks outstanding 41840 d. Check returned (correct amount) 760 c. Check wrongly accounted by bank($7,250 -$2,750) 4500 f. Bank srvice charges 125 d. Check returned (wrongly entered in books) 7600 g. Wrong charge made by bank 100 e. Collection of note 7385 h.NSF check 2500 i. Checks from September not yet cleared 10110 k. ATM withdrawal not recorded 150 j. Interest credited 320 l. Wrong credit by bank 2020 Total Additions 15835 Total Additions 73775 Reductions: Reductions: a. Checks outstanding 41840 b. Deposit dated Nov.30 12200 c. Check wrongly accounted by bank($7,250 -$2,750) 4500 d. Check returned (correct amount) 760 d. Check returned (wrongly entered in books) 7600 f. Bank srvice charges 125 e. Collection of note 7385 g. Wrong charge made by bank 100 i. Checks from September not yet cleared 10110 h.NSF check 2500 j. Interest credited 320 k. ATM withdrawal not recorded 150 l. Wrong credit by bank 2020 Total deductions 73775 Total deductions 15835 Balance as per books 79235 Balace as per bank 137175 Cash balance as on November 1, 2016 81145 Deposits made during November 305450 Checks written during November -307360 Cash balance as on November 30, 2016 * 79235