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BACKHAUS COMPANY Bank Reconciliation

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Question;P8-4A;The;bank portion of the bank reconciliation for Backhaus Company at November 30;2012, was as follows.;BACKHAUS;COMPANY;Bank;Reconciliation;November;30, 2012;Cash;balance per bank $14,367.90;Add;Deposits in transit;2,530.20;16,898.10;Less;Outstanding checks;Check;Number Check Amount;3451;$2,260.40;3470;720.10;3471;844.50;3472 1,426.80;3474;1,050.00;6,301.80;Adjusted;cash balance per bank;$10,596.30;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 540.80;$15,438.70;The;cash records per books for December showed the following.;Cash;Receipts;Cash;Payments Journal;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 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;$14,933.20;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 $4,145 for the collection of a $4,000 note for Backhaus Company plus;interest of $160 and less a collection fee of $15. Backhaus Company has not;accrued any interest on the note.;2. A;debit of $572.80 for an NSF check written by D. Chagnon, a customer. At;December 31, the check had not been redeposited in the bank.;At;December 31 the cash balance per books was $12,485.20, and the cash balance per;the bank statement was $20,154.30. The bank did not make any errors, but two;errors were made by Backhaus Company.;Using;the four steps in the reconciliation procedure, prepare a bank reconciliation;at December 31. (List outstanding check numbers from smallest to largest e.g.;3, 6, 10. Round answers to 2 decimal places, e.g. 10.50. List amounts from;largest to smallest e.g. 10, 5, 3, 2.);BACKHAUS;COMPANY;Bank;Reconciliation;December;31, 2012;$;Add;Less;$;Adjusted;cash balance per bank;$;$;Add;Less;$;Adjusted;cash balance per books;$;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.) (For multiple debit/credit entries, list amounts from;largest to smallest e.g. 10, 5, 3, 2. Round answers to 2 decimal places, e.g.;10.50.);Date;Description/Account Debit Credit;Dec. 31;(To;record collection of note receivable by bank.);Dec. 31;(To;record NSF check.);Dec. 31;(To record error on check no.3485.);Dec. 31;(To;record error in deposit.)

 

Paper#37915 | Written in 18-Jul-2015

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