Question

LANGER COMPANY Bank Reconciliation November 30, 2017
Cash balance per bank				$14,717.90
Add: Deposits in transit				2,530.20
				17,248.10
Less: Outstanding checks
Check Number		Check Amount
3451		$ 2,260.40
3470		720.10
3471		844.50
3472		1,426.80
3474		1,056.00		6,307.80
Adjusted cash balance per bank				$10,940.30

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		540.80
		Total		$15,438.70

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		792.00		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		889.50		12-25		2,567.30
12-10		3480		600.00		Total				$13,927.20		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 $5,275 for the collection of a $5,130 note for Langer Company plus interest of $160.00 and less a collection fee of $15.00. Langer Company has not accrued any interest on the note.
2.		A debit of $578.80 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $14,335.20, and the cash balance per the bank statement was $22,128.30. The bank did not make any errors, but two errors were made by Langer Company.

Answer 1

	LANGER COMPANY
	Bank Reconciliation
	December 31, 2020
Cash balance per bank statement		22128.30
Add: Deposits in transit		1690.40
		23818.70
Less: Outstanding checks
No. 3470	720.10
No. 3474	1056.00
No. 3478	621.30
No. 3481	807.40
No. 3484	792.00
No. 3486	889.50
		4886.30
Adjusted cash balance per bank		18932.40
Cash balance per books		14335.20
Add: Note collected by bank		5275.00
		19610.20
Less:
Error in recording check	90.00
Error in deposit	9.00
NSF check	578.80
		677.80
Adjusted cash balance per books		18932.40
2
Dec.31     Cash	5275.00
Miscellaneous expense	15.00
Notes Receivable		5130.00
Interest revenue		160.00
(To record collection of notes receivable)
Dec.31     Accounts Receivable	578.80
Cash		578.8
(To correct NSF check)
Dec.31     Accounts Payable	90.00
Cash		90.00
(To correct error in recording check)
Dec.31     Accounts Receivable	9.00
Cash		9.00
(To correct error in deposit)