The bank portion of the bank reconciliation for Williams Company at October 31, 2012, was as follows.
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WILLIAMS COMPANY |
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|
Bank Reconciliation |
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|
October 31, 2012 |
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|
Cash balance per bank |
$6,000 |
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|
Add: Deposits in transit |
842 |
|
|
6,842 |
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|
Less: Outstanding checks |
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|
Check Number |
Check Amount |
|
|
2451 |
$700 |
|
|
2470 |
396 |
|
|
2471 |
464 |
|
|
2472 |
270 |
|
|
2474 |
578 |
2,408 |
|
Adjusted cash balance per bank |
$4,434 |
The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits:
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Bank Statement |
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|
Checks |
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|
Date |
Number |
Amount |
Date |
Amount |
|
11 1 |
2470 |
$ 396 |
11 1 |
$ 842 |
|
11 2 |
2471 |
464 |
11 4 |
666 |
|
11 5 |
2474 |
578 |
11 8 |
545 |
|
11 4 |
2475 |
903 |
11 13 |
1,416 |
|
11 8 |
2476 |
1,556 |
11 18 |
810 |
|
11 10 |
2477 |
330 |
11 21 |
1,624 |
|
11 15 |
2479 |
980 |
11 25 |
1,412 |
|
11 18 |
2480 |
714 |
11 28 |
908 |
|
11 27 |
2481 |
382 |
11 30 |
652 |
|
11 30 |
2483 |
317 |
Total |
$8,875 |
|
11 29 |
2486 |
495 |
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|
Total |
$7,115 |
The cash records per books for November 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 |
|
|
11 1 |
2475 |
$ 903 |
11 20 |
2483 |
$ 317 |
11 3 |
$ 666 |
|
|
11 2 |
2476 |
1,556 |
11 22 |
2484 |
460 |
11 7 |
545 |
|
|
11 2 |
2477 |
330 |
11 23 |
2485 |
525 |
11 12 |
1,416 |
|
|
11 4 |
2478 |
300 |
11 24 |
2486 |
495 |
11 17 |
810 |
|
|
11 8 |
2479 |
890 |
11 29 |
2487 |
210 |
11 20 |
1,642 |
|
|
11 10 |
2480 |
714 |
11 30 |
2488 |
635 |
11 24 |
1,412 |
|
|
11 15 |
2481 |
382 |
Total |
$8,067 |
11 27 |
908 |
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|
11 18 |
2482 |
350 |
11 29 |
652 |
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|
11 30 |
1,541 |
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|
Total |
$9,592 |
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The bank statement contained two bank memoranda:
1. A credit of $1,375 for the collection of a $1,300 note for Williams Company plus interest of $91 and less a collection fee of $16. Williams Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks $34.
At November 30, the cash balance per books was $5,958, and the cash balance per the bank statement was $9,100. The bank did not make any errors, but two errors were made by Williams Company.
Instructions
(a) Using the four steps in the reconciliation procedure described on pages 384–385, prepare a bank reconciliation at November 30.
(b) Prepare the adjusting entries based on the reconciliation.