Question

The bank portion of the bank reconciliation for Blossom Company at October 31, 2021, was as follows:

BLOSSOM COMPANY Bank Reconciliation October 31, 2021
Cash balance per bank				$11,771
Add: Deposits in transit				1,580
				13,351
Less: Outstanding cheques
#2451		$1,200
#2470		960
#2471		882
#2472		516
#2474		1,060		4,618
Adjusted cash balance per bank				$8,733

The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following:

BLOSSOM COMPANY Bank Statement November 30, 2021
		Cheques and Other Debits
Date		Number			Amount			Deposits			Amount
Oct. 31											$11,771
Nov. 3		2470			$960			$1,580			12,391
4		2471			882						11,509
5		2475			1,641			1,222			11,090
6		2474			1,060						10,030
7		2476			2,910			990			8,110
10		2477			600						7,510
13								2,575			10,085
14		2479			1,750						8,335
18		2480			1,330			1,400			8,405
21								3,844			12,249
25		NSF			230			2,567			14,586
26		2481			695						13,891
27								1,650			15,541
28		2486			900			EFT 2,490			17,131
28		2483			513			1,186			17,804
30		LN			2,220						15,584

Additional information from the bank statement:

1.		The EFT of $2,490 is an electronic transfer from a customer in payment of its account. The amount includes $60 of interest that Blossom Company had not previously accrued.
2.		The NSF for $230 is a $215 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The company’s policy is to pass on all NSF service charges to the customer.
3.		The LN is a payment of a note payable with the bank and consists of $220 interest and $2,000 principal.
4.		At November 30, the cash balance per books was $11,552. The bank did not make any errors.

The cash records per books for November follow. Two errors were made by Blossom Company.

Cash Payments
Date		Number			Amount			Date			Number			Amount
Nov. 3		2475			$1,641			Nov. 18			2482			$609
3		2476			2,190			20			2483			513
4		2477			600			21			2484			821
6		2478			576			24			2485			917
8		2479			1,750			26			2486			900
10		2480			1,330			28			2487			1,110
14		2481			695			Total						$13,652

Cash Receipts
Date		Amount
Nov. 3		$1,222
7		990
12		2,575
17		1,400
20		3,488
24		2,567
27		1,650
28		1,186
30		1,393
Total		$16,471

A) Prepare a bank reconciliation at November 30.

B) Prepare the necessary adjusting entries at November 30. (Note: The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

19504 15591

Particulars	Amount ($)	Amount ($)
Balance as per bank		15,584
Add: Deposit in transit		1,393
Less: outstanding checks:
2451	1,200
2472	516
2478	576
2482	609
2484	821
2485	917
2487	1,110
		(5,749)
Adjusted cash balance per bank		11,228
Cash balance as per books		11,552
Add: EFT fund transfer	2,490
Error in Deposit	356	2,846
Less:
NSF	230
LN	2,000
Interest on Note Payable	220
Error in recording 2476	720	(3,170)
Adjusted cash balance as per books		11,228

.

Date	General Journal	Debit	Credit
Nov 30	Cash	2,490
	Accounts Receivable		2,490
	(To record electronic funds transfer received by bank)
	Cash	356
	Accounts Receivable		356
	(To correct error in deposit)
	Accounts Receivable	230
	Cash		230
	(To record NSF check)
	Note Payable	2,000
	Interest Expense	220
	Cash		2,220
	(To record payment of Note payable)
	Accounts Payable	720
	Cash		720
	(To correct error in recording check)