Balloon Supply Co. reconciled its bank statement balances of Cash on October 31 and showed two cheques outstanding at that time, #1388 for $14,650 and #1393 for $9,800. The following information was available for the November 30, 2020, reconciliation:

From the November 30 bank statement:

From Balloon Supply Co.?s accounting records:

? Cheque #1404 was correctly written for $2,601 to pay for computer equipment: however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $6,201.

? The NSF cheque was originally received from a customer, Jerry Skyles, in payment of his account. Its return was not recorded when the bank first notified the company.

? The credit memo resulted from receiving an electronic fund transfer of $10,700 for a customer payment. The bank had deducted a $150 bank service charge fee. The collection has not been recorded in the books.

Required

1. Prepare a November 30 bank reconciliation for the company.

2. Prepare the general journal entries needed to adjust the book balance of Cash to the reconciled balance.

Transcribed Image Text:

Balance of previous statement on Oct 31/20. 106,980 6 deposits and other credits totalling. 9 cheques and other debits totalling. 63,568 123,873 Current balance as of November 30/20. 46,675 Chequing Account Transactions Transaction Transaction Amount Date Amount Description Date Description Nov. 25 21,640 29,008 Nov. 05 +Deposit +Deposit 250 12 956 +Deposit 30 +Interest 10,550 17 1,810 -NSF cheque 30 +Credit memo 21 1,164 +Deposit Date Cheque No. Amount Date Cheque No. Amount 1402 Nov. 03 9,325 Nov. 17 1409 12,125 11,500 04 1403 20 1405 14,850 08 1388 14,650 27 1407 38,412 2,601 12 1401 18,600 29 1404 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 Oct 31 Balance 82,530 Nov. 30 CR12 86,145 168,675 30 CD23 149,733 18,942 Deposits Made Cheques Written Nov $21,640 No. 1401 $ 18,600 12 956 1402. 9,325 21 1,164 1403. 11,500 25 29,008 1404. 6,201 30 33,377 1405. 14,850 Total November Cash Receipts . $86,145 1406. 12,980 1407. 38,412 1408. 25,740 1409. 12,125 Total November Cash Disbursements.. $149,733