As the new junior accountant at Colwell Company, you have been asked to prove the cash account balance at 12/31/12. You have obtained the following information:
a. The 12/31/12 bank statement shows a beginning balance of $38,783, receipts of $229,832, disbursements of $226,625, and an ending balance of $41,990.
b. There were deposits of $11,450 on 11/30/12 that did not reach the bank until December. On 12/31/12, deposits of $10,900 were mailed to the bank.
c. The list of outstanding checks totaled $29,831 at 11/30/12 and $33,450 at 12/31/12.
d. On 11/15/12, the bank made an error charging Colwell for a $1,000 withdrawal that should have been deducted from the account of Cromwell Company. Colwell is waiting for the bank to recognize the error.
e. On 12/20/12, Colwell wrote a check for $415.30, but recorded it as $451.30. The check cleared the bank in December.
f. Colwell's 12/22/12 deposit for $11,930 was recorded as $19,330.
g. The bank statement showed that deposited checks totaling $6,520 were dishonored during December.
h. Interest on a bank loan for the month of December charged by the bank but not recorded on the books amounted to $355.
i. The bank charged Colwell a $75 service charge for December.
Required:
(a) Prepare a bank reconciliation for Colwell, determining the correct cash balance.
(b) Prepare the journal entries required by Colwell at 12/31/12.
(c) What cash amount will appear on Colwell's balance sheet at 12/31/12?