Question

Exercise 202 The Hartman Boat Company's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the accounting records had a balance of $5,659 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 Maris Company was recorded in the cash payments record and cleared the bank for $248. A review of the accounts payable record shows a $36 balance in the account of Maris Company and that the payment to them should have been for $284. (4) The total amount of checks still outstanding at November 30 amounted to $5,800. (5) Check No. 138 was correctly written and paid by the bank for $409. The cash payment record reflects for the recording of Check No. 138 as a debit to Accounts Payable and a decrease to Cash in Bank for $490. (6) The bank returned an NSF check from a customer for $560. (7) The bank included a credit memorandum for $2,060 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000 and interest was $60. Interest has not been accrued.

Answer 1

Hartman Boat Company Bank Reconciliation November 30
Cash balance per bank		7000
Add: Deposit in transit		6000
Less: Outstanding checks		-5800
Adjusted cash balance per books		7200
Cash balance per books		5659
Add:Accounts Payable Error (490-409)	81
Collect €2,000 note and interest €60	2060	2141
Less: Check printing	-40
NSF check	-560	-600
Adjusted cash balance per books		7200

Date	General Journal	Debit	Credit
30-Nov	Cash	81
	Accounts payable
30-Nov	Cash	2060
	Notes receivable		2000
	Interest revenue		60
30-Nov	Miscellaneous expense	40
	Cash		40
30-Nov	Accounts receivable	560
	Cash		560