You recently started work in the accounting department at Fagan Industries. Your first task is to reconcile the bank statement as at December 31, 2015. You have been provided with the required information to reconcile the bank statement, and you notice that the date of the previous bank reconciliation is October 31.
DECEMBER BANK STATEMENT:

NOVEMBER BANK STATEMENT:

CASH ACCOUNT TRANSACTIONS FOR NOVEMBER AND DECEMBER:
GL Account: CASH IN BANK 1040
For the period of NOV-01-15 to DEC-31-15

PRECEDING BANK RECONCILIATION (DATED OCTOBER 31):

Instructions
1. Prepare a bank reconciliation as at December 31, 2015. Assume that any errors in recording deposits were made by the company and any errors in recording cheques were made by the bank.
2. Journalize any necessary entries.
3. What should be the balance of the Cash Account as at December 31, 2015?

Transcribed Image Text:

EXAMPLE BANK Statement of Account Account Type Statement From To 7257193-00 Business DEC 01/15 DEC 31/15 DESCRIPTION DATE WITHDRAWALS DEPOSITS BALANCE BALANCE FORWARD DEPOSIT CHO 447 CHO 454 CHO 462 CHO 464 DEPOSIT CHO 463 DEPOSIT DEPOSIT EFT CHO 466 CHO 467 DEPOSIT DEPOSIT DEPOSIT EFT DEPOSIT Service Cha NOV 30 DEC 03 DEC 04 DEC 04 DEC 04 DEC 06 DEC 06 DEC 07 DEC 10 DEC 13 DEC 13 DEC 14 DEC 14 DEC 17 DEC 20 DEC 27 DEC 31 DEC 31 DEC 31 5,509.42 8,101.69 7,999.51 7,678.23 7,456.50 6,975.58 8,952.45 7,581.54 8,443.08 9,365.32 6,258.24 3,789.98 3,106.77 5,684.06 6,900.07 7,686.06 3,707.45 4,442.38 4,369.63 2,592.27 102.18 321.28 221.73 180.92 1,976.87 1,370.91 861.54 922.24 3,107.08 2,468.26 683.21 2,577.29 1,216.01 785.99 3,978.61 734.93 72.75 12,806.93 11,667.14 Statement of Account Account Type Statement From To 7257193-00 Business NOV 01/15 NOV 30/15 DESCRIPTION DATE WITHDRAWALS DEPOSITS BALANCE BALANCE FORWARD CHQ 443 CHO 451 CHO 452 DEPOSIT CHO 453 DEPOSIT NSF DEPOSIT DEPOSIT CHO 455 CHO 456 CHO 458 CHO 459 EFT DEPOSIT DEPOSIT DEPOSIT DEPOSIT CHO 457 CHO 460 DEPOSIT OCT 31 NOV 01 NOV 01 NOV 01 NOV 01 NOV 02 NOV 05 NOV 07 NOV 08 NOV 12 NOV 13 NOV 15 NOV 15 NOV 15 NOV 15 NOV 15 NOV 19 NOV 22 NOV 26 NOV 27 NOV 28 NOV 29 NOV 30 NOV 30 5,291.78 4,843.49 2,907.99 1,603.49 5,357.20 4,394.85 7,069.23 6,187.40 7,163.95 7,880.86 7,501.18 5,031.00 4,604.12 4,104.32 903.23 3,669.06 7,461.02 8,354.40 9,256.52 8,372.36 8,302.18 9,203.76 5,582.17 5,509.42 448.29 1,935.60 1,304.40 3,753.71 962.35 2,674.38 881.83 976.55 379.68 2,470.18 426.88 499.80 2,765.83 3,791.96 993.38 902.12 884.16 901.58 3,621.59 72.75 17,158.78 Service Charge 17,376.42 DATE REFERENCE DEBIT CREDIT BALANCE Dr. (Cr.) Opening Balance 2,674.38 976.55 2,765.83 3,791.96 893.38 902.12 901.58 2,592.27 976.87 8 861.54 922.24 DEC 14 DEC 19 DEC 20 2,577.29 DEC 21 DEC 28 DEC 31 734.93 24,289.85 Cash balance according to bank statement Add deposit of October 31 not recorded by bank. . $5,291.78 3,753.71 9,045.49 Deduct outstanding cheques: No. 443 447 451 $ 048.29 102.18 1.935.60 2.486.07 $6,559.42 Adjusted balance. Cash balance according to company's records. Deduct: Service charges.. Adjusted balance.. S6,632,17 72.75 S6.559.42