Question

Arthur's Men's Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement:

1. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned.
2. Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank.
3. A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement.
4. The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98.
5. Included in the bank statement was a bank debit memo for service charges, $29.
6. A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest.

Required:

1. Prepare a bank reconciliation as of November 30, assuming that the debit and credit memos have not been recorded. Round your answers to two decimal places.

Arthur's Men's Shop
Bank Reconciliation
November 30, 20--
Bank Statement Balance		$
		$
No. 1420	$
No. 1500
No. 1517
No. 1518
No. 1519
Adjusted Bank Statement Balance		$
Ledger Balance of Cash		$
	$
		$
Adjusted Ledger Balance of Cash		$

2. Record the necessary entries in general journal form. If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL					PAGE
DATE	DESCRIPTION		POST. REF.	DEBIT	CREDIT
20--
Nov. 30
	Error in recording Check No. 1487.
Nov. 30
	Bank collected note signed by C. G. Tolson.
Nov. 30
	Bank service and collection charges.

Answer 1

1. Bank reconciliation statement is prepared as follows:

Results of the excel sheet are as follows:

2.

Required journal entries are as follows: