Question

The following information is available to reconcile Samara Co.’s book balance of cash with its bank statement cash balance as of December 31, 2015.

The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40.

Check No. 1273 for $4,589.30 and Check No. 1282 for $400, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. 1231 for $2,289 and No. 1242 for $410.40, were outstanding on the most recent November 30 reconciliation. Check No. 1231 is listed with the December canceled checks, but Check No. 1242 is not.

When the December checks are compared with entries in the accounting records, it is found that Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465.

Two debit memoranda are enclosed with the statement and are unrecorded at the time of the reconciliation. One debit memorandum is for $762.50 and dealt with an NSF check for $745 received from a customer, Titanium Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. The second debit memorandum is a $99 charge for check printing. Samara did not record these transactions before receiving the statement.

A credit memorandum indicates that the bank collected $19,000 cash on a note receivable for the company, deducted a $20 collection fee, and credited the balance to the company’s Cash account. Samara did not record this transaction before receiving the statement.

Samara’s December 31 daily cash receipts of $9,583.10 were placed in the bank’s night depository on that date but do not appear on the December 31 bank statement.

Required

Prepare the bank reconciliation for this company as of December 31, 2015.

Answer 1

Answer:

Bank Recocilation
December 31, 2015
Bank's Statement Balance	Amount ($)	Book Cash Balance	Amount ($)
As Per Bank Statement	46,822	As Per General Ledger	32,878
Add:		Add:
Cash Not Deposited in Bank	9,583	Proceeds of Note	19,000
		Check - Error in recording Chk No 1267 ($3,465 -$3,456)	9
Deduct:		Deduct:
Outstanding Checks
-1273	-4,589	NSF Check	-745
-1282	-400	Bank service Charges for NSF Check($762.5-$745)	-17.5
-1242	-410	Bank Charges - ( For Check Printing)	-99
		Collection Charge of Notes Receivables	-20
Bank Balance after Reconcilation	51,006	Balance as per Reconcilation	51,006