Reference no: EM132345509
Question
(Bank Reconciliation and Adjusting Entries) The cash account of Green Co. showed a ledger bal- ance of $8,650,90 on November 30, 2014.
The bank statement as of that date showed a balance of $10,667.00. Upon comparing the statement with the cash records, the following facts were determined.
There were bank service charges for November of $30.
A bank memo stated that Solo's note for $1,500 and interest of $61 had been collected on November 3, and the bank had made a charge of $8 on the collection. (No entry had been made on Green's books when Solo's note was sent to the bank for collection.)
Receipts for November 30 for $1,170 were not deposited until December 4.
Checks outstanding on November 30 totaled $2,361.20.
The bank had charged Green Co.'s account for a customer's uncollectible check amounting to $318.00 on November 29.
A customer 's check for $210 had been entered as $240 in the cash receipts journal by Green on November 21.
Check no. 8560 in the amount of $580 had been entered in the cash journal as $850, and check no. 8572 in the amount of $688.00 had been entered as $68.80. Both checks had been issued to pay for pur- chases of inventory on account.
(a) Prepare a bank reconciliation dated November 30, 2014, proceeding to a correct cash balance.
(b) Prepare any entries necessary to make the books correct and complete.