bank reconciliation and adjusting entries

Project Description:

prepare a bank reconciliation and adjusting entries from detailed data.
(so 5), ap

the bank portion of the bank reconciliation for horsman company at october 31, 2012, is shown here and on the next page.
______________________________________________________
horsman company
bank reconciliation
october 31, 2012
cash balance per bank $12,367.90
add: deposits in transit 1,530.20
13,898.10

less: outstanding checks
check number check amount
2451 $ 1,260.40
2470 684.20
2471 844.50
2472 426.80
2474 1,050.00 4,265.90
adjusted cash balance per bank $ 9,632.20


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 $ 684.20 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 1,750.00 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 940.00
total $12,940.30
______________________________________________________
the cash records per books for november showed the following.

cash payments journal
date number amount date number amount
11-1 2475 $1,640.70 11-20 2483 575.50
11-2 2476 2,830.00 11-22 2484 829.50
11-2 2477 600.00 11-23 2485 974.80
11-4 2478 538.20 11-24 2486 940.00
11-8 2479 1,705.00 11-29 2487 398.00
11-10 2480 1,330.00 11-30 2488 800.00
11-15 2481 695.40 total $14,469.10
11-18 2482 612.00
_______________________________________________________
cash receipts journal
date amount
11-3 $ 1,211.60
11-7 990.10
11-12 2,575.00
11-17 1,472.70
11-20 2,954.00
11-24 2,567.30
11-27 1,650.00
11-29 1,186.00
11-30 1,304.00
total $15,910.70
_____________________________________________________
the bank statement contained two bank memoranda:


1.
a credit of $2,242 for the collection of a $2,100 note for horsman company plus interest of $157 and less a collection fee of $15. horsman company has not accrued any interest on the note.
2.
a debit for the printing of additional company checks $85.

at november 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. the bank did not make any errors, but horsman company made two errors.
instructions
(a)
using the four steps in the reconciliation procedure described , prepare a bank reconciliation at november 30, 2012.
(a) cash bal. $13,176.80
(b)
prepare the adjusting entries based on the reconciliation. (note: the correction of any errors pertaining to recording checks should be made to accounts payable. the correction of any errors relating to recording cash receipts should be made to accounts receivable.)

ps: this is done on a spreadsheet which i have attached
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