Question:
Mae Telford, the controller of the Baylor Company, provided the following information:
The Cash account in the General Ledger appeared as follows on November 30 (Baylor Company uses only a General Journal to record transactions):
The following bank statement is available for November 2014:
Required
a. Prepare bank reconciliation for Baylor Company for the month of November 2014. Assume that any errors made were by the bookkeeper (cheque #547 was for advertising expense; the deposit of November 9 was regarding a credit customer, Val Pacino).
b. Prepare the necessary entries resulting from the bank reconciliation.
Analysis Component:
You have been employed with Baylor Company since November 1, 2014, and part of your job is writing and recording cheques as well as preparing the bank reconciliation. In reviewing the cheques returned by the bank, you notice that the payee on cheque #543 is the employee you recently replaced. You investigate further and find that the journal entry recording cheque #543 debited Office Supplies Expense. What should you do? Explain.
Transcribed Image Text:
Baylor Company Bank Reconciliation October 31, 2014 Bank statement balance Add: $19,687.60 Book balance $45,548.66 Deposit of Oct. 31 in transit.. 4,280.45 523,968.05 Deduct: Deduct Outstanding cheques: NSF cheque plus #537 #542 725,00 2,965.34 3,690.34 service charge 125,140.95 Bank service charges.30,00 25,270.95 20,277.71 Adjusted bank balance S20,27771 d Adjusted book balance.. Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2014 Oct. 3 Balance Nov. 20,277.71 1 | Cheque#543 Cheque #544 Cheque #545 Cheque #546 1Cheque 547 Cheque #548 | Cheque #549 Gi5 GIS GI5 6,505.12 854.71 12,917.88 1,156.94 11,760.94 9,196.70 7,851.02 7,794.57 564.237,230.34 8,779.31 5,322.16 4,336.52 9,986.37 4,429.66 3,465.41 4,716.06 2,564.24 91 1,345.68 56.45 9 Deposit 18 Deposit 29 Deposit GIS G16 Gj6 Gj6 Gl6 Gj6 Gj6 Gj6 Gj6 Gj6 1,548.97 Cheque #550 Cheque #551 3.457.15 985.64 5,649.85 20 | Cheque #552 27 | Cheque #553 5,556.71 964.25 1,250.65 Bank Statement To: Baylor Company November 30, 2014 Bank of Canada Cheques/Charges Deposits/Credits 10/31 11/01 Balance 19,687.60 4,280.45 23,403.82 16,898.70 16,173.70 1,584.97 16,773.03 13,807.69 12,952.98 5,649.85 15,457.15 14,300.21 11,735.97 11,620.97 11/01 11/02 11/07 11/09 #549 #543 #537 #551 #542 #544 #547 #545 #546 SC 564.23 6,505.12 725.00 985.64 2,965.34 854.71 3,145.68 1,156.94 2,564.24 115.00 11/09 11/20 11/29 11/30 11/30 NSF Not Sufficient SC Sc PMT Principal Payment INT Interest Funds Charge