Question

1. The bank portion of the bank reconciliation for Thomas Company at November 30, 2019, is:

THOMAS COMPANY Bank Reconciliation November 30, 2019 Cash balance per bank $14,367.90 Add: Deposits in transit 2,530.20 16,898.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 1,100.10 3471 824.50 3472 1,446.80 3474 1,050.00 6,681.80 Adjusted cash balance per bank $10,216.30

The adjusted cash balance per bank agreed with the cash balance per books at November 30.

At December 31, the cash balance per books was $12,613.30, and the cash balance per bank statement was $18,878.40. The bank did not make any errors, but Thomas Company made two errors. Assume any error in checks were written for Accounts Payable and all cash receipts were for Accounts Receivable.

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 3470 1,100.10 12-4 1,211.60 12-7 3472 1,446.80 12-8 2,365.10 12-4 3475 1,640.70 12-16 2,632.70 12-8 3476 1,300.00 12-21 2,955.00 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 12-28 3482 475.50 BC 2,645.00 12-29 3484 764.00 12-31 3485 540.80 NSF 919.10

Additional information:

	1.    BC (Bank Collection) of $2,645 is for the collection of a $2,500 note for Thomas Company plus interest of $160 and less a collection fee of $15. 2.    NSF (Non-sufficient Funds) is for a check from a customer.

The cash records per books for December showed the following.

Cash Payments Journal Date Number Amount Date Number Amount 12-1 3475 $1,640.70 12-20 3482 $ 475.50 12-2 3476 1,300.00 12-22 3483 1,310.00 12-2 3477 2,130.00 12-23 3484 764.00 12-4 3478 508.20 12-24 3485 450.80 12-8 3479 3,080.00 12-30 3486 1,389.50 12-10 12-17 3480 3481 600.00 807.40

Cash Receipts Journal Date Amount 12-3 $ 1,211.60 12-7 2,365.10 12-15 2,672.70 12-20 2,955.00 12-25 2,567.30 12-28 2,836.00 12-30 1,025.00 12-31 1,220.40

Instructions:

1. Prepare the bank reconciliation for December 31.
2. Prepare the adjusting journal entries required by the bank reconciliation. Tip: utilize a ledger t-account to post your journal entries and determine if you achieve the desired ending cash balance.

Answer 1

Answer a.

Answer b.