Question

The Hartman Boat Company's bank statement for the month of November showed a balance per bank of $6,919. The company's Cash account in the general ledger had a balance of $5,659 at November 30. Other information is as follows:

(1)    Cash receipts for November 30 recorded on the company's books were $5,200 but this amount does not appear on the bank statement.

(2)    The bank statement shows a debit memorandum for $40 for check printing charges.

(3)    The total amount of checks still outstanding at November 30 amounted to $5,800.

(4)    The bank returned an NSF check from a customer for $560.

(5)    The bank included a credit memorandum for $1,260 which represents collection of a customer's note by the bank for the company; principal amount of the note was $1,200 and interest was $60. Interest has not been accrued.

Instructions

Prepare a bank reconciliation for the Hartman Boat Company at November 30 and use to answer the following questions.

1) Which transaction numbers went under the bank side of the reconciliation? (Choose all appropriate answers)

1

2

3

4

5

None of the above

2) Which transaction numbers went under the book side of the reconciliation?  (Choose all appropriate answers)

1

2

3

4

5

None of the above

3) How much was the adjusted bank/book balance?  Amount can be entered with or without commas. DO NOT include dollar signs or decimals.

Answer 1

The Hartman Boat Company
Bank Reconciliation
Nov-30
Bank Statement Balance		6,919	Book Balance		5,659
Add:			Add:
Deposit in Transit	5,200		Note Collected	1,200
			Interest Received	60
Deduct:			Deduct:
Outstanding Checks	5,800
			NSF Check	560
			Check Printing Charges	40
Adjusted Bank Balance		6,319	Adjusted Book Balance		6,319
Transaction numbers went under the bank side
(1)    Cash receipts for November 30 recorded on the company's books were $5,200 but this amount does not appear on the bank statement.
(3)    The total amount of checks still outstanding at November 30 amounted to $5,800.
Transaction numbers went under the book side
(2)    The bank statement shows a debit memorandum for $40 for check printing charges.
(4)    The bank returned an NSF check from a customer for $560.
(5)    The bank included a credit memorandum for $1,260
How much was the adjusted bank/book balance?	6,319