Question

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.)

Answer 1

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)