Reference no: EM13485295

The Malamura Company deposits all receipts in the bank and makes all payments by check. On November 30 its Cash account has a balance of $2,289. The bank statement on November 30 shows a balance of $2,894. You are given the following information with which to reconcile the bank statement:

(a) A deposit of $320 was placed in the night depository on November 30 and did not appear on the bank statement.

(b) The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1727 for $81.30; no. 1730 for $127.40; and no. 1732 for $62.40. Checks no. 1727 and 1730 were returned with the November bank statement; however, check no. 1732 was not returned.

(c) Check no. 1742 for $98.50, no. 1743 for $46.27, no. 1744 for $37.92, and no. 1745 for $200.91 were written during November but were not returned by the bank.

(d) You compare the cancelled checks with the entries in the checkbook and find that check no. 1737 for $58, payable to C.R. Malamura, the owner, for her personal use, was written correctly. However, the check was recorded in the checkbook as $85.

(e) Included in the bank statement was a bank debit memo for service charges, $12.

(f) A bank credit memo was also enclosed for the collection of a note signed by L. B. Norman, $464, including $436 principal and $28 interest.

Instructions:

(a) Prepare a bank reconciliation as of November 30, assuming that the debit and credit memos had not been recorded.