The bank portion of the bank reconciliation for Helene Company at November 30, 2012, was as follows.
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HELENE COMPANY |
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|
Bank Reconciliation |
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|
November 30, 2012 |
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|
Cash balance per bank |
$14,367.90 |
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|
Add: Deposits in transit |
2,530.20 |
|
|
16,898.10 |
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|
Less: Outstanding checks |
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|
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.
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Bank Statement |
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|
Checks |
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|
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 |
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|
12 31 |
3485 |
540.80 |
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|
Total |
$15,438.70 |
The cash records per books for December showed the following.
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Cash Receipts |
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|
Cash Payments Journal |
Journal |
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|
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 |
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|
12 17 |
3481 |
807.40 |
12 30 |
1,025.00 |
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|
12 31 |
1,690.40 |
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|
Total |
$17,322.10 |
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The bank statement contained two memoranda:
1. A credit of $4,145 for the collection of a $4,000 note for Helene Company plus interest of $160 and less a collection fee of $15. Helene Company has not accrued any interest on the note.
2. A debit of $572.80 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 $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 Helene Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31.
(b) Prepare the adjusting entries based on the reconciliation.