Question

The bank statement and cash activity information for the month of November for Stella Inc. is provided below. Washington Bank Statement Balance at 10/31/19: $48,351.65 Deposits Amount Date Amount Date Withdrawals Check Number 4002 4010 EFT 2-Nov 4-Nov 7-Nov 9-Nov 10-Nov 15-Nov 17-Nov 20-Nov 20-Nov 26-Nov 28-Nov 4018 4011 4019 4021 4023 4022 SC $303.50 $874.50 $24,500.00 $890.00 $206.40 $2,033.30 $456.60 $539.00 $720.00 $27.00 $645.00 1-Nov 2-Nov 6-Nov 10-Nov 11-Nov 15-Nov 17-Nov 22-Nov 23-Nov 29-Nov 30-Nov (Interest) $4,554.00 $5,025.00 $15,005.00 $625.60 $155.00 $934.40 $1,300.00 $122.20 $325.25 $1,000.00 $105.00 4024 29-Nov 30-Nov 30-Nov 4025 NSF MTG $400.00 $1,500.00 $8,500.00

Answer 1

1)Ending cash balance per Bank =Beginning balance as on 1 Nov +Deposits -Total Withdrawals

                           = 48351.65 + 29151.45 - 41595.3

                           = 35907.8

#Total deposits :4554+5025+15005+625.6+155+934.4+1300+122.2+325.25+1000+105 = 29151.45

2)Ending cash balance as per Book = Beginning balance+ Total deposits -Total withdrawals

               = 55621 .25 + 19787.75 - 32809.6

               = 42599.4

#Total deposits:15005+625.6+255+934.4+1300+122.2+325.25+100+428.3+692=19787.75

3)

BANK RECONCILIATION STATEMENT
Balance as per Bank	35907.8	Balance as per Books	42599.4
Add:Deposit in transit (428.3+692)made on 29 Nov and 30 Nov	1120.3	Add: Error made by company in recording deposit on 29 Nov(1000-100)	900
		Interest credited by bank	105
Less:Check outstanding		Less:
4001	123.9	Error made by company in recording deposit on 8 Nov (255-155)	-100
4005	158.4	Check drawn not recorded by company 4021	-456.6
4007	642.7	service charge	-27
4020	982.8	NSF	-1500
4026	890.8	MTG	-8500
4027	1208.7
Adjusted bank balance	33020.8	Adjusted book balance	33020.8

4)

Date	Account title	Debit	credit
30 Nov	cash	900
	cash short or over		900
30 Nov	cash	105
	Interest revenue		105
30 Nov	cash short and over	100
	cash		100
30 Nov	bank service charge	27
	cash		27
30 Nov	Accounts receivable	1500
	cash		1500
30Nov	Mortgage payable	7600
	Interest expense	900
	cash		8500

Those adjustment that were made to reconcile bank balance is not to be recorded in books as same has already been recorded in company 's books but not reflected in bank statement .