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 interest 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 but was never recorded in the cash ledger. The bank paid $380 for interest earned on the checking account.

Answer 1

SOLUTION:

BANK RECONCILIATION
Ending balance per bank statement	17420
Add: Cash receipts	5200
Less: Chq error (-300 + 2300)	-2000
Less: Outstanding checks (-2500 - 3200)	-5700
Adjusted cash balance per bank	14920
Ending balance per cash books	15,890
Less: Bank service charge	380
Less: EFT payment	-1000
Less: NSF Checks (-3120 - 30)	-3150
Less: Rent error (- 1400 +4100)	-2700
Add: Customer receipts (7000 + 500)	7500
Less: Chq to Lewis was not recorded	-2000
Adjusted cash balance per books	14,920