Question

You have just been hired by Peter’s Pets as an office administrator. One of your first tasks is to prepare the bank reconciliation for the month of November. The bank statement for the month ending November 30, shows a balance of $10,000 and the accounting records show a balance of $8,650. At the end of the previous month there was one outstanding cheque #217 for $3,000 for roof repairs and an outstanding deposit for cash receipts of $1,000 deposited after banking hours on October 31. Below is information for the for the month of November. 

1. The outstanding cheque # 217 from October is still outstanding at the end of November.

2. The outstanding deposit from October appears the bank statement on November 2.

3. Bank charges for November were $75.

4. Insurance premiums for the month of November in the amount of $200 was automatically withdrawn from the bank account on the 15th of the month.

5. On November 30, cash in the amount of $2,000 related to that day’s sales was recorded in the cash receipts journal but does not appear as a deposit on November’s bank statement.

6.  In the cash disbursements journal, there are two cheques recorded that do not appear on the bank statement, cheque #234 in the amount of $450 and cheque #239 in the amount of $175. 

Required: Prepare the bank reconciliation for November 30th and any necessary journal entries