Question

Problem 7-4A The bank portion of the bank reconciliation for Pharoah Company at October 31, 2017, is shown below. PHAROAH COMPANY Bank Reconciliation October 31, 2017 Cash balance per bank $12,627.90 Add: Deposits in transit 1,530.20 14,158.10 Less: Outstanding checks Check Number Check Amount 2451 $1,260.40 2470 684.20 2471 844.50 2472 435.65 1,050.00 2474 4,274.75 $9,883.35 Adjusted cash balance per bank 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. Bank Statement Checks Deposits Number Date Amount Date Amount 11-1 2470 $684.20 11-1 $1,530.20 11-2 2471 844.50 1,211.60 11-4 11-5 2474 1,050.00 11-8 990.10 2475 1,640.70 11-13 2,575.00 11-4 11-8 2476 2,830.00 11-18 1,472.70 11-21 2,945.00 11-10 2477 600.00 11-25 11-15 2479 1,730.00 2,567.30 1,650.00 11-18 2480 1,330.00 11-28 1,186.00 11-27 2481 695.40 11-30 16,127.90 11-30 2483 Total 575.50 11-29 940.00 2486 Total $12,920.30 The cash records per books for November showed the following. Cash Receipts Journal Cash Payments Journal Amount Number Date Number Amount Date Amount Date 2475 $1,640.70 11-20 2483 $575.50 11-3 $1,211.60 11-1

Answer 1

PHAROAH COMPANY BANK RECONCILIATION NOVEMBER, 2017 $ 18163.65 Cash Balance as per bank statement Add: Deposit in transit Add: Cheque book printing expenses debited in bankstatement but not yet recorded in books 1564.00 93.85 Add:error in posting of oustanding check no. 2479 in books 27.00 Add: deposit on 11-20 for $ 2945 wrongly posted as $ 2954 in books 9.00 19857.5 Less: Outstanding Checks check numeber check ammount 2451 1260.40 2472 435.65 2478 538.20 2482 612.00 2484 820.65 2485 974.80 2487 398.00 2488 800.00 5839.70 14017.80 Less: Deposit by Electronic fund transfer not entered in cash balance as per books 2422 00 Cash balance as per books 11595.80

$3 1 Account title s and Explanation 5 Date Debit Credit Nov-30 Bank 2422 Account Receivables (to record electronic fund transfer received by bank) 2422 Nov-30 Bank charges Bank 93.85 93.85 (To record charges for printing company checks) Nov-30 Account Payable Bank 27 27 (to rectify error for recording cheques no 2479 in books) Nov-30 Account Receivables Bank (to rectify error for recording deposit made on 20 november in books)