Els Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,038.05 and No. 5893 for $484.25. The following information is available for its September 30, 2011, reconciliation.
From the September 30 Bank Statement
PREVIOUS BALANCE | TOTAL CHECKS AND DEBITS | TOTAL DEPOSITS AND CREDITS | CURRENT BALANCE |
16,800.45 | 9,620.05 | 11,182.85 | 18,363.25 |
CHECKS AND DEBITS | DEPOSITS AND CREDITS | DAILY BALANCE | ||||
Date | No. | Amount | Date | Amount | Date | Amount |
09/03 | 5888 | 1,038.05 | 09/05 | 1,103.75 | 08/31 | 16,800.45 |
09/04 | 5902 | 731,90 | 09/12 | 2,226.90 | 09/03 | 15,762.40 |
09/07 | 5901 | 1,824.25 | 09/21 | 4,093.00 | 09/04 | 15,030.50 |
09/17 |
| 588.25 NSF | 09/25 | 2,351.70 | 09/05 | 16,134.25 |
09/20 | 5905 | 937.00 | 09/30 | 22.50 IN | 09/07 | 14,310.00 |
09/22 | 5903 | 399 | 09/30 | 1,385.00 CM | 09/12 | 16,536.90 |
09/22 | 5904 | 2,080.00 |
|
| 09/17 | 15,948.65 |
09/28 | 5907 | 213.85 |
|
| 09/20 | 15,011.65 |
09/29 | 5909 | 1,807.65 |
|
| 09/21 | 19,104.65 |
|
|
|
|
| 09/22 | 16,625.55 |
|
|
|
|
| 09/25 | 18,977.25 |
|
|
|
|
| 09/28 | 18,763.40 |
|
|
|
|
| 09/29 | 16,955.75 |
|
|
|
|
| 09/30 | 18,363.25 |
From Els Company’s Accounting Records
Cash Receipts Deposited | |||
Date |
| Cash Debit | |
Sept. | 5 |
| 1,103.75 |
| 12 |
| 2,226.90 |
| 21 |
| 4,093.00 |
| 25 |
| 2,351.70 |
| 30 |
| 1,582.75 |
|
|
| 11,358.10 |
Cash Disbursements | ||
Check No. |
| Cash Credit |
| ||
5901 |
| 1,824.25 |
5902 |
| 73 1.90 |
5903 |
| 399.10 |
5904 |
| 2,050.00 |
5905 |
| 937.00 |
5906 |
| 859.30 |
5907 |
| 213.85 |
5908 |
| 276.00 |
5909 |
| 1,807.65 |
|
| 9,099.05 |
| Cash | Acct. No. 101 | ||||
Date | Explanation | PR | Debit | Credit | Balance | |
Aug. Sept. | 31 30 30 | Balance Total receipts Total disbursements |
R12 D23 | 11,358.10 |
9,099.05 | 15,278.15 26,636.25 17,537.20 |
Additional Information
Check No. 5904 is correctly drawn for $2,080 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a
From the September 30 Bank Statement
credit to Cash of $2,050. The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company. The credit memorandum is from the collection of a $1,400 note for Els Company by the bank. The bank deducted a $15 collection fee. The collection and fee are not yet recorded.
Required
1. Prepare the September 30, 2011, bank reconciliation for this company.
2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance.
Analysis Component
3. The bank statement reveals that some of the prenumbered checks in the sequence are missing. Describe three situations that could explain this.
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