Question

In: Accounting

The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as...

The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows.

LANGER COMPANY
Bank Reconciliation
November 30, 2017

Cash balance per bank

$14,657.90

Add: Deposits in transit

2,530.20

17,188.10

Less: Outstanding checks

Check Number

Check Amount

3451

$ 2,260.40

3470

720.10

3471

844.50

3472

1,426.80

3474

1,057.90

6,309.70

Adjusted cash balance per bank

$10,878.40


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

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 3471 844.50 12-4 1,211.60
12-7 3472 1,426.80 12-8 2,365.10
12-4 3475 1,640.70 12-16 2,672.70
12-8 3476 1,300.00 12-21 2,945.00
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

12-30 3482 475.50 Total

$18,152.90

12-29 3483 1,140.00
12-31 3485

540.80

Total

$15,438.70


The cash records per books for December showed the following.

Cash Payments Journal

Cash Receipts Journal

Date

Number

Amount

Date

Number

Amount

Date

Amount

12-1 3475 $1,640.70 12-20 3482 $475.50 12-3 $ 1,211.60
12-2 3476 1,300.00 12-22 3483 1,140.00 12-7 2,365.10
12-2 3477 2,130.00 12-23 3484 790.10 12-15 2,672.70
12-4 3478 621.30 12-24 3485

450.80

12-20 2,954.00
12-8 3479 3,080.00 12-30 3486

889.50

12-25 2,567.30
12-10 3480 600.00 Total

$13,925.30

12-28 2,836.00
12-17 3481 807.40 12-30 1,025.00
12-31

1,690.40

Total

$17,322.10


The bank statement contained two memoranda:

1. A credit of $5,295 for the collection of a $5,150 note for Langer Company plus interest of $160.00 and less a collection fee of $15.00. Langer Company has not accrued any interest on the note.
2. A debit of $580.70 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.


At December 31, the cash balance per books was $14,275.20, and the cash balance per the bank statement was $22,086.40. The bank did not make any errors, but two errors were made by Langer Company.

A: Prepare the adjusting entries based on reconciliation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75. For error in check and deposit use accounts payable and accounts receivable.)

Solutions

Expert Solution

Langer Company
Bank Reconciliation
December 31, 2017
Particulars Amount ($) Amount ($)
Balance as per bank 22,086.40
Add: Deposit in transit 1,690.40 1,690.40
Less: outstanding checks:
3470 720.10
3474 1,057.90
3478 621.30
3481 807.40
3484 790.10
3486 889.50 4,886.30
Adjusted cash balance per bank 18,890.50
Cash balance as per books 14,275.20
Add: Note collected by bank (5,150+160-15) 5,295.00
Less:
NSF check 580.70
Error in recording deposit (2945-2954) 9.00
Error in recording check (540.8-450.8) 90.00
Adjusted cash balance as per books 18,890.50

Adjusting entries

Date Particulars L.F Amount ($) Amount ($)
Dec-31 Cash 5,295
Bank Charges 15
   Notes Receivable 5,150
    Interest Revenue 160
(For cash received from notes)
Dec-31 NSF Check 580.70
   Cash 580.70
(For NSF check recorded)
Dec-31 Account Payable 90
   Cash 90
(for check recorded with correct value)
Dec-31 Account Receivable 9.00
   Cash 9
(For error in recording deposit)

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