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FIN - Financial Accounting ? Project II

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Question;The bank portion of the bank reconciliation for the Louda Company at October 31, 2007 as as follows:LOUDA COMPANY Bank Reconciliation October 31, 2007Cash balance per bank $12,367.90Add: Deposits in transit 1,530.2013,898.10Less: Outstanding checksCheck Number Check Amount2451 $1,260.402470 720.102471 844.502472 426.802474 1,050.00 4,301.80Adjusted cash balance per bank 9,596.30The adjusted cash balance per bank agreed with the cash balance per books at October 31st.The November bank statement showed the following checks and deposits.Bank StatementChecks DepositDate Number Amount Date Amount11-1 2470 $ 720.10 11-1 $1,530.2011-2 2471 844.50 11-4 1,211.6011-5 2474 1,050.00 11-8 990.1011-4 2475 1,640.70 11-13 2,575.0011-8 2476 2,830.00 11-18 1,472.7011-10 2477 600.00 11-21 2,945.0011-15 2479 1,750.00 11-25 2,567.3011-18 2480 1,330.00 11 -28 1,650.00. 11-27 2481 695.40 11-30 1,186.0011-29 2483 575.50 Total $16,127.9011-30 2486 900.00Total $12,936.20The cash records per books for November show the following information:Cash Payments Journal Cash Receipts JournalDate Number Amount Date Number Amount Date Amount11-1 2475 $1,640.70 11-20 2483 575.50 11-3 $1,211.6011-2 2476 2,830.00 11-22 2484 829.50 11-7 990.1011-2 2477- 600.00 11-23 2485 974.80 11-12 2,575.0011-4 2478 538-20 11-24 2486 900.00 11-17 1,472.7011-8 2479 1,570.00 11-29 2487 398.00 11-20 2,954.0011-10 2480 1,330.00 11-30 2488 800.00 11-24 2,567.3011-15 2481 695.40 Total $14,294.10 11-27 1,650.0011-18 2482 612.00 11-29 1,186.0011-30 1,225.00Total $15,831.70The bank statement contained two bank memoranda:1. A credit of $2,105.00 for the collection of a $2,000 note for Louda Company plus interest of $120 and less a collection fee of $15.Louda Company accrued interest to the maturity of the note.2. A debit for the printing of additional company checks, $50.00.At November 30 the cash balance per books was $11,133.90 and the cash balance per the bank statement was $17,614.60.The bank did not make any errors but two errors were made by Louda Company.Instructions:(a) Prepare the bank reconciliation at November 30, 2007(b) Prepare the adjusting entries based on the reconciliation. (Note. 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.)

 

Paper#50091 | Written in 18-Jul-2015

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