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CONLIN COMPANY

Bank Reconciliation

October 31, 2010

Cash balance per bank $11,444.70

Add: Deposits in transit 1,530.20

12,974.90

Less: Outstanding checks

Check Number Check Amount

2451 $1,260.40

2470 720.10

2471 844.50

2472 503.60

2474 1,050.00 4,378.60

Adjusted cash balance per bank $8,596.30

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	2,830.0	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	1,570.00	11-29	2487	398.00		11-20	2,954.00
11-10	2480	1,330.00	11-30	2488	1,200.00		11-24	2,567.30
11-15	2481	695.40	Total		$14,933.20		11-27	1,650.00
11-18	2482	612.00					11-29	1,186.00
							11-30	2,338.00
							Total	$16,944.70

The bank statement contained two memoranda:

1. A credit of $2,505.00 for the collection of a $2,400 note for Conlin Company plus interest of $120 and less a collection fee of $15. Conlin Company has not accrued any interest on the note.

2. A debit for the printing of additional company checks $72.

At November 30, the cash balance per books was $10,846.90, and the cash balanced per the bank statement was $17,069.40. The bank did not make errors, but two errors were made by Conlin Company.

Instructions

(a) Prepare a bank reconciliation at November 30.

*Adjusted cash balance per bank $13,090.90.

(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 to recording cash receipts should be made to Accounts Receivable.)

Answer & Explanation Solved by verified expert

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