Question

1. Bank Reconciliation and Entries

   The Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.cash account for Collegiate Sports Co. on November 1 indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The A summary of all transactions mailed to the depositor or made available online by the bank each month.bank statement indicated a balance of $112,675 on November 30. 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.

   Collegiate Sports Co.
   Bank Reconciliation
   November 30
   Cash balance according to bank statement		$
   Add bank error in charging check as $2,750 instead of $7,250 Add bank service charges Add deposit of November 30, not recorded by bank Add outstanding checks Add note and interest collected by bank
   		$
   Deduct bank service charges Deduct check returned because of insufficient funds Deduct deposit of November 30, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank	$
   Deduct bank error in charging check as $2,750 instead of $7,250 Deduct bank service charges Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct proceeds of note collected by bank, including $100 interest
   Adjusted balance		$
   Cash balance according to company's records		$
   Add bank error in charging check as $2,750 instead of $7,250 Add bank service charges Add check returned because of insufficient funds Add deposit of November 30, not recorded by bank Add note and interest collected by bank	$
   Add bank service charges Add cash balance according to company's records Add deposit of November 30, not recorded by bank Add error in recording check as $7,600 instead of $760 Add outstanding checks
   		$
   Deduct check returned because of insufficient funds Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct outstanding checks Deduct note and interest collected by bank	$
   Deduct bank service charges Deduct deposit of November 30, not recorded by bank Deduct error in recording check by Collegiate Sports Co. Deduct outstanding checks Deduct note and interest collected by bank
   Adjusted balance		$

   Feedback

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

   a. Nov. 30	Accounts Payable-Ramirez Co. Accounts Receivable-Ramirez Co. Cash Interest Revenue Notes Receivable
   	Cash Cash Short and Over Interest Receivable Miscellaneous Administrative Expense Notes Receivable
   	Accounts Receivable-Hallen Academy Interest Revenue Petty Cash Sales Unearned Interest
   	Accounts Payable-Ramirez Co. Accounts Receivable-Ramirez Co. Cash Cash Short and Over Sales
   b. Nov. 30	Accounts Payable-Hallen Academy Accounts Receivable-Hallen Academy Cash Short and Over Interest Expense Interest Revenue
   	Cash Short and Over Miscellaneous Expense Miscellaneous Revenue Notes Receivable Petty Cash
   	Accounts Payable-Hallen Academy Accounts Receivable-Hallen Academy Cash Miscellaneous Revenue Petty Cash

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

Answer 1

Solution 1:

Solution 2:

Solution 3:

Amount to be reported as cash = $78,535