Question

2.) Based on the following information, prepare the November bank reconciliation for the Avisa Company and also prepare the general journal entries Avisa must make at November 30. . The following information is available for the Avisa Company for the month of November: a. On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202 b. The company's bank statement shows a balance on November 30 of $29,279. c. Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check # 3556 in the amount of $1,459. d. A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee and credited the remainder of $770 to Avisa's account e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown. f.A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appear on the bank statement. g.Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540. h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.

Answer 1

Answer :

Avisa Company
Bank Reconciliation
November 30
Company's Book			Bank Statement
Balance per books		$ 27,202	Balance per bank		$ 29,279
Add:			Add:
Electronic fund transfer	$ 770		Deposit in transit		$    1,675
Error in recording of check #3445 ($2,540-$2,450)	$    90
		$        860
Deduct:			Deduct: Outstanding checks
NSF Check	$    67		#3030	$ 1,525
Bank service charges	$    25		#3556	$ 1,459
		$          92			$    2,984
Adjusted book balance		$ 27,970	Adjusted bank balance		$ 27,970