Question

 The bank portion of the bank reconciliation for Blossom Company at October 31, 2022, is shown below.

 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November 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 $2,342.00 for the collection from a customer for Blossom Company of an electronic funds transfer.

 2. A debit for the printing of additional company checks $86.00.

 At November 30, the cash balance per books was $11,276.80 and the cash balance per bank statement was $17,941.50. The bank did not make any errors, but Blossom Company made two errors.

 Using the steps in the reconciliation procedure, prepare a bank reconciliation at November 30, 2022.  

 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.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275. 50.)

Answer 1

	BLOSSOM COMPANY
	Bank Reconciliation
	November 30, 2022
Cash balance per bank statement		17941.50
Add: Deposits in transit		1404.00
		19345.50
Less: Outstanding checks
No. 2451	1260.40
No. 2472	427.80
No. 2478	538.20
No. 2482	612.00
No. 2484	828.50
No. 2485	974.80
No. 2487	398.00
No. 2488	800.00
		5839.70
Adjusted cash balance per bank		13505.80
Cash balance per books		11276.80
Add: Electronic funds transfer received		2342.00
		13618.80
Less:
Error in recording check	18.00
Error in deposit	9.00
Check printing charge	86.00
		113.00
Adjusted cash balance per books		13505.80
2
Nov 30     Cash	2342.00
Accounts Receivable		2342.00
(To record electronic funds transfer received by bank)
Nov 30     Bank service charge expense/Miscellaneous expense	86.00
Cash		86.00
(To record charge for printing company checks)
Nov 30     Accounts Payable	18.00
Cash		18.00
(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 = 1720-1702 = $18
Error in deposit is for 11/20 deposit. Error amount = 2954-2945 = $9