Question

The bank portion of the bank reconciliation for Pharoah Company at October 31, 2021, was as follows: PHAROAH COMPANY Bank Reconciliation October 31, 2021 Cash balance per bank $11,769 Add: Deposits in transit 1,540 13,309 Less: Outstanding cheques    #2451 $1,400    #2470 920    #2471 845    #2472 522    #2474 1,060 4,747 Adjusted cash balance per bank $8,562 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following: PHAROAH COMPANY Bank Statement November 30, 2021 Cheques and Other Debits Date Number Amount Deposits Amount Oct. 31 $11,769 Nov. 3 2470 $920 $1,540 12,389 4 2471 845 11,544 5 2475 1,641 1,216 11,119 6 2474 1,060 10,059 7 2476 1,930 990 9,119 10 2477 600 8,519 13 2,575 11,094 14 2479 1,750 9,344 18 2480 1,330 1,526 9,540 21 3,844 13,384 25 NSF 270 2,567 15,681 26 2481 695 14,986 27 1,650 16,636 28 2486 900 EFT 2,490 18,226 28 2483 617 1,186 18,795 30 LN 2,260 16,535 Additional information from the bank statement: 1. The EFT of $2,490 is an electronic transfer from a customer in payment of its account. The amount includes $60 of interest that Pharoah Company had not previously accrued. 2. The NSF for $270 is a $255 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The company’s policy is to pass on all NSF service charges to the customer. 3. The LN is a payment of a note payable with the bank and consists of $260 interest and $2,000 principal. 4. At November 30, the cash balance per books was $11,987. The bank did not make any errors. The cash records per books for November follow. Two errors were made by Pharoah Company. Cash Payments Date Number Amount Date Number Amount Nov. 3 2475 $1,641 Nov. 18 2482 $624 3 2476 1,390 20 2483 617 4 2477 600 21 2484 809 6 2478 523 24 2485 953 8 2479 1,750 26 2486 900 10 2480 1,330 28 2487 1,270 14 2481 695 Total $13,102 Cash Receipts Date Amount Nov. 3 $1,216 7 990 12 2,575 17 1,526 20 3,488 24 2,567 27 1,650 28 1,186 30 1,329 Total $16,527

Prepare a bank reconciliation at November 30.

Answer 1

Pharoah Company
Bank Reconciliation Statement
Nov 30, 2021
Unadjusted bank balance		16535
Add: Deposit in Transit		1329
		17864
Less: Outstanding checks
#2451	1400
#2472	522
#2478	523
#2482	624
#2484	809
#2485	953
#2487	1270	6101
Adjusted bank Balance		11763
Unadjusted cash balance		11987
Add: Error in deposit		356
Add: EFT Collection of Accounts Receivable	2490
		14833
Less: NSF Check		270
Less: Error in check #2476		540
Less: LN		2260
Adjusted Cash Balance		11763