The bank portion of the bank reconciliation for Helene Company at November 30, 2012, was as follows.
|
HELENE COMPANY
Bank Reconciliation
November 30, 2012
|
| Cash balance per bank |
|
|
|
$14,795.61
|
| Add: Deposits in transit |
|
|
|
2,530.20
|
| Less: Outstanding checks |
|
|
|
17,325.81
|
|
Check Number
|
|
Check Amount
|
|
|
| 3451 |
|
$ 2,260.40
|
|
|
| 3470 |
|
720.10
|
|
|
| 3471 |
|
844.50
|
|
|
| 3472 |
|
1,426.80
|
|
|
| 3474 |
|
1,058.94
|
|
6,310.74
|
| Adjusted cash balance per bank |
|
|
|
$11,015.07
|
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 |
|
530.80
|
|
|
|
|
|
|
Total |
|
$15,428.70
|
|
|
|
|
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 |
|
789.06 |
|
12-15 |
|
2,672.70 |
| 12-4 |
|
3478 |
|
621.30 |
|
12-24 |
|
3485 |
|
350.80
|
|
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 |
|
|
|
$14,824.26
|
|
12-28 |
|
2,836.00 |
| 12-17 |
|
3481 |
|
807.40 |
|
|
|
|
|
|
|
12-30 |
|
1,025.00 |
|
|
|
|
|
|
|
|
|
|
|
|
12-31 |
|
1,690.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$17,322.10
|
The bank statement contained two memoranda:
| 1. |
|
A credit of $4,293.84 for the collection of a $4,148.84 note for Helene Company plus interest of $160.00 and less a collection fee of $15.00. Helene Company has not accrued any interest on the note. |
| 2. |
|
A debit of $581.74 for an NSF check written by L. Purl, a customer. At December 31, the check had not been redeposited in the bank. |
At December 31, the cash balance per books was $13,512.91, and the cash balance per the bank statement was $21,231.91. The bank did not make any errors, but two errors were made by Helene Company.
(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.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
| 1. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(To record collection of note receivable by bank)
|
|
|
| 2. |
|
|
|
|
|
|
|
|
(To record NSF Check)
|
|
|
| 3. |
|
|
|
|
|
|
|
|
(To correct error in recording check)
|
|
|
| 5. |
|
|
|
|
|
|
|
|
(To correct error in deposit)
|
|
|
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