Question

The Carla Vista Boat Company's bank statement for the month of November showed a balance per bank of $8,500. The company's Cash account in the general ledger had a balance of $5,536 at November 30. Other information is as follows:

(1)		Cash receipts for November 30 recorded on the company's books were $6,480 but this amount does not appear on the bank statement.
(2)		The bank statement shows a debit memorandum for $50 for check printing charges.
(3)		Check No. 119 payable to Sunland Company was recorded in the cash payments journal and cleared the bank for $368. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sunland Company and that the payment to them should have been for $386.
(4)		The total amount of checks still outstanding at November 30 amounted to $6,260.
(5)		Check No. 138 was correctly written and paid by the bank for $506. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $560.
(6)		The bank returned an NSF check from a customer for $700.
(7)		The bank included a credit memorandum for $3,880 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,748 and interest was $132. Interest has not been accrued.

Prepare a bank reconciliation for the Carla Vista Boat Company at November 30. AND Prepare any adjusting entries necessary as a result of the bank reconciliation.

Answer 1