Question

The Blossom Boat Company's bank statement for the month of November showed a balance per bank of $7,100. The company's Cash account in the general ledger had a balance of $5,796 at November 30. Other information is as follows:

(1)		Cash receipts for November 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement.
(2)		The bank statement shows a debit memorandum for $40 for check printing charges.
(3)		Check No. 119 payable to Cullumber Company was recorded in the cash payments journal and cleared the bank for $167. A review of the accounts payable subsidiary ledger shows a $9 credit balance in the account of Cullumber Company and that the payment to them should have been for $176.
(4)		The total amount of checks still outstanding at November 30 amounted to $5,740.
(5)		Check No. 138 was correctly written and paid by the bank for $206. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $260.
(6)		The bank returned an NSF check from a customer for $500.
(7)		The bank included a credit memorandum for $2,050 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $2,000 and interest was $50. Interest has not been accrued.

Prepare a bank reconciliation for the Blossom Boat Company at November 30.

BLOSSOM BOAT COMPANY Bank Reconciliation                                                                       November 30For the Year Ended November 30For the Month Ended November 30
select an opening name for section one                                                                      Cash Balance Per BankDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				$enter a dollar amount
select between addition and deduction                                                                      AddLess: select a reconciling item                                                                      Cash Balance Per BankDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				enter a dollar amount
				enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess: select a reconciling item                                                                      Cash Balance Per BankDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				enter a dollar amount
select a closing name for section one                                                                      Cash Balance Per BankDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				$enter a total amount for the first section
select an opening name for section two                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				$enter a dollar amount
select between addition and deduction                                                                      AddLess:
select a reconciling item                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank		$enter a dollar amount
select a reconciling item                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank		aenter a dollar amount
				enter a subtotal of the two previous amounts
				enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:
select a reconciling item                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank		enter a dollar amount
select a reconciling item                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for section two                                                                      Cash Balance Per BooksDeposit in TransitOutstanding ChecksAdjusted Cash Balance Per BooksAccounts Payable ErrorCollection of Note and InterestCheck PrintingNSF CheckAdjusted Cash Balance Per Bank				$enter a total amount for the second section

Prepare any adjusting entries necessary as a result of the bank reconciliation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

BLOSSOM BOAT COMPANY
Bank Reconciliation
For the Month Ended November 30
Particulars	Add:	Less:	$
Cash Balance in General Ledger			5796
Cash receipts for November 30 recorded on the company's books but does not appear on the bank statement.		6000
The bank statement shows a debit memorandum for check printing charges.		40
Check No. 119 payable to Cullumber Company was recorded in the cash payments journal and cleared the bank for $167. A review of the accounts payable subsidiary ledger shows a $9 credit balance in the account of Cullumber Company and that the payment to them should have been for $176. (no effect)	0	0
The total amount of checks still outstanding at November 30	5740
Check No. 138 was correctly written and paid by the bank for $206. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $260.	54
The bank returned an NSF check from a customer for $500.		500
The bank included a credit memorandum for $2,050 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $2,000 and interest was $50. Interest has not been accrued.	2050
	7844	6540
Addition for Reconciliation			7844
Subtraction for Reconciliation			-6540
Balance as per Bank Statement			7100