Question

1. The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

   1. Checks outstanding totaled $41,840.
   2. A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.
   3. A check for $7,250 had been incorrectly charged by the bank as $2,750.
   4. A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account.
   5. The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000.
   6. Bank service charges for November amounted to $125.
   7. A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.

   Required:

   1. Prepare a bank reconciliation as of November 30, 20Y9.

   Collegiate Sports Co.
   Bank Reconciliation
   November 30, 20Y9
   Cash balance according to bank statement		$
   	$
   Total deductions
   Adjusted balance		$
   Cash balance according to company's records		$
   	$
   Total additions
   	$
   Total deductions
   Adjusted balance		$

   2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

   20Y9 Nov. 30
   Nov. 30

   3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 20Y9, what amount should be reported as cash?
   $

Answer 1

			Bank Reconciliation
1)	Cash balance according to bank statement						112,675
	Deposit in transit						12,200
	Checks oustanding					41,840
	Error in recording check					4500
	Total deductions						46,340
	Adjusted balance						78,535
	Cash balance according to company's records						66,935
	Note collection					7,385
	Error in recording payment					6840
	Total addittions						14,225
	Bank service charge					125
	NSF					2,500
	Total deductions						2,625
	Adjusted balance						78,535
2)	2009
	30-Nov	Cash				14,225
		Accounts payable-Ramirez					6840
		Note receivable					7000
		interest income					385
	30-Nov	Bank service charge				125
		Accounts receivable				2,500
		cash					2,625
3)	78,535