Question

 P7.5A (LO 3) The bank portion of the bank reconciliation for Bogalusa Company at October 31, 2020. is as follows.

 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The Novem- ber bank statement showed the following checks and deposits.

 The cash records per books for November showed the following.

 The bank statement contained two bank memoranda:

 1. A credit of S2,242 for the collection for Bogalusa Company of an electronic funds transfer.

 2. A debit for the printing of additional company checks $85.

 At November 30, the cash balance per books was S11,073.80 and the cash balance per bank statement was S17,712.50. The bank did not make any errors, but Bogalusa Company made two errors.

 Instructions

 a. Using the steps in the reconciliation procedure described in the chapter, prepare a bank reconciliation at November 30, 2020.

 b. Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.)

Answer 1

	BOGALUSA COMPANY
	Bank Reconciliation
	November 30, 2020
Cash balance per bank statement		17712.50
Add: Deposits in transit		1304.00
		19016.50
Less: Outstanding checks
No. 2451	1260.40
No. 2472	426.80
No. 2478	538.20
No. 2482	612.00
No. 2484	829.50
No. 2485	974.80
No. 2487	398.00
No. 2488	800.00
		5839.70
Adjusted cash balance per bank		13176.80
Cash balance per books		11073.80
Add: Electronic funds transfer received		2242.00
		13315.80
Less:
Error in recording check	45.00
Error in deposit	9.00
Check printing charge	85.00
		139.00
Adjusted cash balance per books		13176.80
b
Nov 30     Cash	2242.00
Accounts Receivable		2242.00
(To record electronic funds transfer received by bank)
Nov 30     Bank service charge expense/Miscellaneous expense	85.00
Cash		85.00
(To record charge for printing company checks)
Nov 30     Accounts Payable	45.00
Cash		45.00
(To correct error in recording check)
Nov 30     Accounts Receivable	9.00
Cash		9.00
(To correct error in deposit)
Note:
Error in recording check is for check 2479. Error amount = 1750-1705 = $45
Error in deposit is for 11/20 deposit. Error amount = 2954-2945 = $9