Question

BANK RECONCILIATION XTRA CREDIT Balboa company sells refrigerators to the general public. On November 30,2009 Its cash ledger balance was 15,890. The bank balance was 17,420 A review of Balboa's transactions revealed the following: • Balboa wrote 75,000 worth of checks. However a check for $2,500 from September and one for $3200 from August had not cleared the bank as of November 30. Cash receipts total 5,200. • An EFT for 1000 was made to Jones Inc. for refrigerators purchased on credit • A check that was written for 2300 was recorded by the bank for 300. • A check for 4100 that was made out to Sampson Rentals for the monthly rent was recorded in the cash ledger for 1400 Johnson a customer made a $7500 loan payment in the bank. The customer signed a note when the loan was made. (Loan principal was 7000 and interes was 500) An NSF check for 3120 was returned and a $30 fee was charged to Balboa's account A check for 2,000 made out to Lewis Inc. was correctly recorded by the bank bu was never recorded in the cash ledger • The bank paid $380 for interest earned on the checking account.

Answer 1

Bank Reconciliation Statement
Bank Statement	Amounts
Balance as at 30 November 2009	$     17,240
Add-: Checks not presented for payment	$       5,700
($2,500 + $3,200)
Less-: Payment to Jones Inc. in EFT	$      -1,000
Add-: Short payment recorded by bank	$       2,000
($2,300 - $300)
Less-: Check to Sampson rental for monthly rent	$      -4,100
Add-: Loan repayment received from Johnson	$       7,500
Add-: NSF Check returned	$       3,120
Less-: Check bouncing charges	$           -30
Less-: Check payment to Lewis Inc	$      -2,000
Add-: Interest earned for the month	$          380
Balance as per bank statement	$     28,810

Cash ledger	Amounts
Balance as at 30 November 2009	$     15,890
Add-: Cash receipts	$       5,200
Add-: Check payment was wrongly recorded in Cash ledger	$       1,400
Updated Closing balance of cash	$     22,490