Assignment: Bank Reconciliation for Helene Company
The bank portion of the bank reconciliation for Helene Company at November 30, 2012, was as follows.
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HELENE COMPANY
Bank Reconciliation
November 30, 2012
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Cash balance per bank
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$14,367.90
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Add: Deposits in transit
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2,530.20
|
|
|
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16,898.10
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Less: Outstanding checks
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|
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Check Number
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Check Amount
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|
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3451
|
$2,260.40
|
|
|
3470
|
720.10
|
|
|
3471
|
844.50
|
|
|
3472
|
1,426.80
|
|
|
3474
|
1,050.00
|
6,301.80
|
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Adjusted cash balance per bank
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$10,596.30
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The adjusted cash balance per bank agreed with the cash balance per books at November 30.
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Bank Statement
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Checks
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Date
|
Number
|
Amount
|
Date
|
Amount
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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
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Total
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$18,152.90
|
|
12-29
|
3483
|
1,140.00
|
|
|
|
12-31
|
3485
|
540.80
|
|
|
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Total
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$15,438.70
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|
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The cash records per books for December showed the following.
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Cash Receipts
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Cash Payments Journal
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Journal
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Date
|
Number
|
Amount
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Date
|
Number
|
Amount
|
Date
|
Amount
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|
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
|
798.00
|
12-15
|
2,672.70
|
|
12-4
|
3478
|
621.30
|
12-24
|
3485
|
450.80
|
12-20
|
2,954.00
|
|
12-8
|
3479
|
3,080.00
|
12-30
|
3486
|
1,889.50
|
12-25
|
2,567.30
|
|
12-10
|
3480
|
600.00
|
Total
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|
$14,933.20
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12-28
|
2,836.00
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|
12-17
|
3481
|
807.40
|
|
|
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12-30
|
1,025.00
|
|
|
|
|
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12-31
|
1,690.40
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|
|
|
|
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Total
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$17,322.10
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The bank statement contained two memoranda:
1. A credit of $4,145 for the collection of a $4,000 note for Helene Company plus interest of $160 and less a collection fee of $15. Helene Company has not accrued any interest on the note.
2. A debit of $572.80 for an NSF check written by L. Purl, a customer. At December 31, the check had not been re-deposited in the bank.
At December 31, the cash balance per books was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Helene 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.