Question

The bank portion of the bank reconciliation for Concord Company at November 30, 2020, was as follows. Concord COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank $14,547.90 Add: Deposits in transit 2,530.20 17,078.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,051.30 6,303.10 Adjusted cash balance per bank $10,775.00 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 12-21 2,945 12-10 3477 2,130 12-26 2,567.30 12-15 3479 3,080 12-29 2,836 12-27 3480 600 12-30 1,025 12-30 3482 475.50 Total $18,152.90 12-29 3483 1,140 12-31 3485 530.80 Total $15,428.70 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 12-22 3483 1,140 12-7 2,365.10 12-2 3477 2,130 12-23 3484 796.70 12-15 2,672.70 12-4 3478 621.30 12-24 3485 350.80 12-20 2,954 12-8 3479 3,080 12-30 3486 889.50 12-25 2,567.30 12-10 3480 600 Total $13,831.90 12-28 2,836 12-17 3481 807.40 12-30 1,025 12-31 1,690.40 Total $17,322.10 The bank statement contained two memoranda: 1. A credit of $2,270 for the collection of Langer Company of an electronic funds transfer. 2. A debit for the printing of additional company checks $86.30. At December 31, the cash balance per books was $14,265.20, and the cash balance per the bank statement was $19,455.80. The bank did not make any errors, but Langer Company made two errors.

Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31. (Round answers to 2 decimal places, e.g. 52.75. List items that increase cash balance first. Reconcile cash balance per bank first.)

Answer 1

	Concord COMPANY
	Bank Reconciliation
	December 31, 2020
Cash balance per bank statement		19455.80
Add: Deposits in transit		1690.40
		21146.20
Less: Outstanding checks
No. 3470	720.10
No. 3474	1051.30
No. 3478	621.30
No. 3481	807.40
No. 3484	796.70
No. 3486	889.50
		4886.30
Adjusted cash balance per bank		16259.90
Cash balance per books		14265.20
Add: Electronic funds transfer received		2270.00
		16535.20
Less:
Error in recording check	180.00
Error in deposit	9.00
Check printing charge	86.30
		275.30
Adjusted cash balance per books		16259.90
Journal entries:
Dec 31     Cash	2270.00
Accounts Receivable		2270.00
(To record electronic funds transfer received by bank)
Dec 31     Bank service charge expense/Miscellaneous expense	86.30
Cash		86.30
(To record charge for printing company checks)
Dec.31     Accounts Payable	180.00
Cash		180.00
(To correct error in recording check)
Dec.31     Accounts Receivable	9.00
Cash		9.00
(To correct error in deposit)
Note:
Error in recording check is for check 3485. Error amount = 530.80-350.80 = $180
Error in deposit is for 12/20 deposit. Error amount = 2954-2945 = $9