Question

Bank Reconciliation and Entries

The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
hecks outstanding totaled $41,840.
A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement.
A check for $7,250 had been incorrectly charged by the bank as $2,750.
A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account.
The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000.
Bank service charges for November amounted to $125.
A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.
Required
Collegiate Sports Co.
Bank Reconciliation
November 30, 20Y9
Cash balance according to bank statement $
Adjustments:
Deposit of November 30, not recorded by bank $
Bank error in charging check as $7,250 instead of $2,750
Outstanding checks
Total adjustments
Adjusted balance $
Cash balance according to company's records $
Adjustments:
Proceeds of note collected by bank, including $385 interest $
Error in recording check as $7,600 instead of $760
Check returned because of insufficient funds
Bank service charges
Total adjustments
Adjusted balance $
2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound entry, if an amount box does not require an entry, leave it blank.
20Y9 Nov. 30 Cash
Notes Receivable
Interest Revenue
Accounts Payable-Ramirez Co.
Nov. 30 Accounts Receivable-Hallen Academy
Miscellaneous Expense
Cash
3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 20Y9, what amount should be reported as cash?
$\

Answer 1

1. Collegiate Sports Co.

Bank Reconciliation

November 30, 20Y9

Cash balance according to bank statement $112,675

Adjustments:

Deposit of November 30, not recorded by bank $12,200

Bank error in charging check as ($4,500)

$7,250 instead of $2,750

Outstanding checks ($41,840)

Total adjustments ($34,140)

Adjusted balance $78,535

Cash balance according to company's records $66,935

($81,145+$293,150-$307,360)

Adjustments:

Proceeds of note collec. Date ted by bank, $7,385

including $385 interest

Error in recording check as $7,600 instead of $760 $6,840

Check returned because of insufficient funds ($2,500)

Bank service charges ($125)

Total adjustments $11,600

Adjusted balance $78,535

2. Date Account Titles Debit Credit

Nov 30 Cash $14,225

Notes receivables $7,000

Interest revenue $385

Account payable $6,840

Nov 30 Account Receivable $2,500

Miscellaneous expenses $125

Cash $2,625

3. The cash to be reported is $78,535.