The cash account for Meers Medical Co. at November 30, 2015, indicated a balance of $14,470.19. The bank statement indicated a balance of $14,363.84 on November 30, 2015. Comparing the bank statement and the accompanying canceled checks and memoranda with the records revealed the following reconciling items:
a. Checks outstanding: Check #23 for $215.70; Check #29 for $79.40; Check #31 for $81.13 and Check #33 for $572.24.
b. A deposit for $700.00 representing receipts for November 30 had been made too late to appear on the bank statement.
c. Interest earned on the checking account was $6.49 and Bank Service charges for November were $32.12.
d. A check for $707.07 returned with the statement had been incorrectly recorded by the company as $770.07. The check was for the payment of an account payable.
e. A deposit for $1,200.00 was incorrectly recorded by the bank as $1,020.00. You plan on calling the bank tomorrow morning to report the error.
f. A customer's check for $212.19 from Nancy Su was returned by the bank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of November 30 using the form below.
2. Journalize the necessary entries based on the reconciliation.
3. After these entries have been posted, what would be the balance of cash on the Balance Sheet on 11/30/2015?
Meers Medical Co.
Bank Reconciliation
November 30, 2015
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Cash balance according to bank statement:
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ADD:
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DEDUCT:
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ADJUSTED BALANCE:
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Cash balance according to company's records:
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ADD:
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DEDUCT:
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ADJUSTED BALANCE:
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Journal entries:
Account Debit Credit