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.

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

Step-by-step explanation:

The Carla Boat Company

Bank Reconciliation Statement

as at 30th November

Balance as per bank balance $8,500

Add: Uncredited payment $6,480

Add: Bank Charges $50

Add: Returned Chq $700

Less: Outstanding Chqs ($6,260)

Less: Note received ($3,880)

Less: transposition error on payment ($54)

Balance as per cash book $5,536

Journal entries for transactions:

1. Debit : Bank Charges Expenses $50

Credit: Bank Account $50

Being bank charges expenses for the month of Nov

2. Debit: Cash in bank $54

Credit: Account Payable $54

Being transposition error on Check No 138

3. Debit: Account payable $700

Credit: Bank Account $700

Being NSF check returned

4. Debit: Bank Account $3,880

Credit: Notes Receivable $3,748

Credit: Interest on investment $132

Being note receivable and accrued int