(ACCT2020) The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here.
HORSMAN COMPANY
Bank Reconciliation
October 31, 2012
Cash balance per bank
$12,641.85
Add: Deposits in transit
1,530.20
14,172.05
Less: Outstanding checks
Check Number Check Amount
2451
$1,260.40
2470 720.10
2471 844.50
2472 428.03
2474
1,050.00 4,303.03
Adjusted cash balance per
bank
$9,869.02
The adjusted cash balance per bank agreed with the cash balance per
books at October 31. The November bank statement showed the following
checks and deposits.
Bank Statement
Checks Deposits
Date Number Amount Date Amount
11-1 2470 $720.10 11-1 $1,530.20
11-2 2471
844.50 11-4
1,211.60
11-5 2474 1,050.00 11-8 990.10
11-4 2475 1,640.70 11-13 2,575.00
11-8 2476 2,830.00 11-18 1,472.70
11-10 2477
600.00 11-21
2,945.00
11-15 2479 1,740.00 11-25 2,567.30
11-18 2480 1,330.00 11-28 1,650.00
11-27 2481
695.40 11-30
1,186.00
11-30 2483
575.50 Total
$16,127.90
11-29 2486 900.00
Total $12,926.20
The cash records per books for November showed the following.
Cash Payments Journal Cash Receipts Journal
Date Number Amount Date Number Amount Date Amount
11-1 2475 $1,640.70 11-20 2483 $575.50 11-3 $1,211.60
11-2 2476 2,830.00 11-22 2484 828.27 11-7 990.10
11-2 2477 600.00 11-23 2485 974.80 11-12 2,575.00
11-4 2478 538.20 11-24 2486 900.00 11-17 1,472.70
11-8 2479 1,704.00 11-29 2487 434.00 11-20 2,954.00
11-10 2480 1,330.00 11-30 2488 755.00 11-24 2,567.30
11-15 2481 695.40 Total $14,417.87 11-27 1,650.00
11-18 2482 612.00
11-29 1,186.00
11-30 1,491.95
Total $16,098.65
The bank statement contained two memoranda.
1. A credit of $2,427.22 for the collection of a $2,285.22
note for Horsman Company plus interest of $157.00 and less a collection
fee of $15.00. Horsman Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks $86.23.
At November 30 the cash balance per books was $11,549.80 and the cash
balance per bank statement was $18,184.54. The bank did not make any
errors, but two errors were made by Horsman Company.
(a) Using the four steps in the reconciliation procedure,
complete the bank reconciliation at November 30, 2012. (List multiple
entries from largest to smallest amounts, e.g. 10, 5, 1. List
outstanding checks in order of check number.)
(b) Prepare the adjusting entries based on the reconciliation.
