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.)