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(ACCT2020) The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here.

 

HORSMAN COMPANY

Bank Reconciliation

October 31, 2012

Cash balance per bank                                                                                                                   $12,641.85

Add: Deposits in transit                                                                                                                 1,530.20

                                                                                                                                                                14,172.05

Less: Outstanding checks            

                                                                Check Number                                  Check Amount 

                                                                2451                                                       $1,260.40            

                                                                2470                                                       720.10  

                                                                2471                                                       844.50  

                                                                2472                                                       428.03  

                                                                2474                                                       1,050.00               4,303.03

Adjusted cash balance per bank                                                                                                                $9,869.02

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.

Bank Statement

Checks                                                  Deposits

Date                      Number               Amount                              Date                      Amount

11-1                       2470                       $720.10                 11-1                       $1,530.20

11-2                       2471                       844.50                                   11-4                       1,211.60

11-5                       2474                       1,050.00                               11-8                       990.10

11-4                       2475                       1,640.70                               11-13                     2,575.00

11-8                       2476                       2,830.00                               11-18                     1,472.70

11-10                     2477                       600.00                                   11-21                     2,945.00

11-15                     2479                       1,740.00                               11-25                     2,567.30

11-18                     2480                       1,330.00                               11-28                     1,650.00

11-27                     2481                       695.40                                   11-30                     1,186.00

11-30                     2483                       575.50                                   Total                      $16,127.90

11-29                     2486                       900.00                                   

                Total                                      $12,926.20                                           

The cash records per books for November showed the following.

Cash Payments Journal                Cash Receipts Journal

                                                                                                                                 

Date        Number      Amount    Date         Number            Amount             Date              Amount

11-1       2475       $1,640.70             11-20     2483                       $575.50 11-3      $1,211.60

11-2       2476       2,830.00               11-22     2484                       828.27                  11-7       990.10

11-2       2477       600.00                   11-23     2485                       974.80                  11-12     2,575.00

11-4       2478       538.20                   11-24     2486                       900.00                  11-17     1,472.70

11-8       2479       1,704.00               11-29     2487                       434.00                  11-20     2,954.00

11-10     2480       1,330.00               11-30     2488                       755.00                  11-24     2,567.30

11-15     2481       695.40                   Total                                     $14,417.87           11-27    1,650.00

11-18     2482       612.00                                                                                                  11-29     1,186.00

                                                                                                                                                11-30     1,491.95

                                                                                                                                                Total      $16,098.65

The bank statement contained two memoranda.

1.            A credit of $2,427.22 for the collection of a $2,285.22 note for Horsman Company plus interest of $157.00 and less a collection fee of $15.00. Horsman Company has not accrued any interest on the note.

2.            A debit for the printing of additional company checks $86.23.

At November 30 the cash balance per books was $11,549.80 and the cash balance per bank statement was $18,184.54. The bank did not make any errors, but two errors were made by Horsman Company.

(a)          Using the four steps in the reconciliation procedure, complete the bank reconciliation at November 30, 2012. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1. List outstanding checks in order of check number.)

(b)          Prepare the adjusting entries based on the reconciliation. 

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