Merkle Company deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $ 3,219.72. The bank statement balance of cash as of November 30, is $ 3,490.72. You are given the following information with which to reconcile the bank statement:
a. A deposit of $ 525.30 was placed in the night depository on November 30 and did not appear on the bank statement.
b. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 728 for $ 80.20, no. 731 for $ 129.00, and no. 732 for $ 145.34. Check no. 728 and no. 731 were returned with the November bank statement; however, check no. 732 was not returned.
c. Check no. 743 for $ 42.00, no. 744 for $ 16.20, no. 745 for $ 119.00, and no. 746 for $ 35.26 were written during November but were not returned by the bank.
d. A $ 150 personal withdrawal by C. R. Merkle, the owner, using an ATM, was not recorded.
e. Included in the bank statement was a bank debit memo for service charges, $ 19.
f. A bank credit memo was also enclosed for the collection of a note signed by O. L. Leland, $ 607.50, including $ 600.00 principal and $ 7.50 interest.

1. Prepare a bank reconciliation as of November 30 assuming that the debit and credit memos have not been recorded.
2. Record the necessary entries in general journal form.

  • CreatedOctober 21, 2014
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