Prepare the adjusting entries based on the reconciliation

Assignment Help Accounting Basics

Reference no: EM13570757

The bank portion of the bank reconciliation for Helene Company at November 30, 2012, was as follows.

HELENE COMPANY Bank Reconciliation November 30, 2012
Cash balance per bank		$14,795.61
Add: Deposits in transit		2,530.20
Less: Outstanding checks		17,325.81
Check Number	Check Amount
3451	$ 2,260.40
3470	720.10
3471	844.50
3472	1,426.80
3474	1,058.94	6,310.74
Adjusted cash balance per bank		$11,015.07

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	530.80
	Total	$15,428.70

The cash records per books for December showed the following.

Cash Payments Journal						Cash Receipts 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	789.06	12-15	2,672.70
12-4	3478	621.30	12-24	3485	350.80	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		$14,824.26	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 $4,293.84 for the collection of a $4,148.84 note for Helene Company plus interest of $160.00 and less a collection fee of $15.00. Helene Company has not accrued any interest on the note.
2.		A debit of $581.74 for an NSF check written by L. Purl, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $13,512.91, and the cash balance per the bank statement was $21,231.91. The bank did not make any errors, but two errors were made by Helene Company.
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31.

HELENE COMPANY Bank Reconciliation December 31, 2012
		$
Add:

Less:
	$






		$

		$
Add:

Less:	$



		$

(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 relating to recording cash receipts should be made to Accounts Receivable.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.



	(To record collection of note receivable by bank)
2.

	(To record NSF Check)
3.

	(To correct error in recording check)
5.

	(To correct error in deposit)

Click if you would like to Show Work for this question:

Open Show Work

Reference no: EM13570757

Questions Cloud

During the year of 20xx a firm plans to produce and sell : during the year of 20xx a firm plans to produce and sell 15000 units at 35 per unit.nbspnbspbudgeted variable costs are

On january 1 2011 the allegheny corporation purchased : on january 1 2011 the allegheny corporation purchased machinery for 115000. the estimated service life of the machinery

Calculate cash flows out of eden inc is planning to invest : calculate cash flows out of eden inc. is planning to invest in new manufacturing equipment to make a new garden tool.

Frances company produces only product a the following : frances company produces only product a. the following information is available selling price per unit 95 variable

Prepare the adjusting entries based on the reconciliation : the bank portion of the bank reconciliation for helene company at november 30 2012 was as follows.helene company bank

As the accounts payable manager you have always been able : as the accounts payable manager you have always been able to negotiate low interest rates when you borrow money to

Visible fences is introducing a new product and has an : visible fences is introducing a new product and has an unexpected change in net operating income of 875000. visible

The potential for improved control over the availability of : sycamore company uses a certain part in its manufacturing process that it buys from an outside supplier for 37 per part

Investor g loeb owns a 5-year 1000 bond with a 5 coupon if : investor g. loeb owns a 5-year 1000 bond with a 5 coupon. if the yield to maturity on similar bonds is currently 10

User Account

All Pages