The bank portion of the bank reconciliation for Langer Company at November 30, 2022, was as follows.
Question:
The bank portion of the bank reconciliation for Langer Company at November 30, 2022, was as follows.
The adjusted cash balance per bank agreed with the cash balance per books at November 30. The December bank statement showed the following checks and deposits.
The cash records per books for December showed the following
The bank statement contained two memoranda.
1. A credit of $5,145 for the collection of a $5,000 note for Langer Company plus interest of $160 and less a collection fee of $15. Langer Company has not previously recorded any interest on the note.
2. A debit of $572.80 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.
At December 31, the cash balance per books was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Langer Company.
Instructions
a. Using the five steps in the reconciliation procedure, prepare a bank reconciliation at December 31.
b. Prepare the necessary entries based on the reconciliation.
Step by Step Answer:
College Accounting
ISBN: 1986
1st Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell