Pool company prepared the following bank reconciliation for the month of November:
Balance per bank statement, November 30 3,600,000 Add: Deposit in Transit 800,000 4,400,000 Less: Outstanding Checks 1,200,000 Bank Credit recorded in error 200,000 1,400,000 Balance per book, November 30 3,000,000 Data Per bank statement for the month of December December deposits, including notes receivable collected
of 1,000,000 for Pool company 5,500,000 December disbursement, including NSF check 350,000 and
service charge 50,000 4,400,000
All items that were outstanding on november 30 cleared through the bank in december, including the bank credit
In addition checks of 500,000 were outstanding and deposits of 700,000 were in transit in December 31.
1. What is the adjusted cash in bank on December 31?
a. 4,700,000
b. 4,900,000
c. 4,500,000
d. 3,200,000
2. What is the balance of cash per ledger on December 31?
a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
3. What is the amount of cash receipt per book in December?
a. 5,400,000
b. 4,400,000
c. 5,500,000
d. 6,400,000
4. What is the amount of cash disbursement per book in December?
a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000
Pool company prepared the following bank reconciliation for the month of November:
| Balance per bank statement, November 30 | 3,600,000 | |
| Add: Deposit in Transit | 800,000 | |
| 4,400,000 | ||
| Less: Outstanding Checks | 1,200,000 | |
| Bank Credit recorded in error | 200,000 | 1,400,000 |
| Balance per book, November 30 | 3,000,000 | |
| Data Per bank statement for the month of December | ||
| December deposits, including notes receivable collected of 1,000,000 for Pool company | 5,500,000 | |
| December disbursement, including NSF check 350,000 and service charge 50,000 | 4,400,000 |
All items that were outstanding on november 30 cleared through the bank in december, including the bank credit
In addition checks of 500,000 were outstanding and deposits of 700,000 were in transit in December 31.
1. What is the adjusted cash in bank on December 31?
a. 4,700,000
b. 4,900,000
c. 4,500,000
d. 3,200,000
2. What is the balance of cash per ledger on December 31?
a. 4,100,000
b. 4,900,000
c. 4,700,000
d. 4,300,000
3. What is the amount of cash receipt per book in December?
a. 5,400,000
b. 4,400,000
c. 5,500,000
d. 6,400,000
4. What is the amount of cash disbursement per book in December?
a. 3,700,000
b. 3,300,000
c. 3,100,000
d. 3,500,000
Related questions
Sam Company prepared the following bank reconciliation on November 30:
| Balance per Bank Statement | 2,100,000 | |
| Deposits outstanding | 300,000 | |
| Checks outstanding | ( 30,000 ) | |
| Correct cash balance | 2,370,000 | |
| Balance per book | 2,372,000 | |
| Bank service charge | ( 2,000 ) | |
| Correct cash balance | 2,370,000 | |
| December Data are as follows: | Bank | Book |
| Checks recorded | 2,300,000 | 2,360,000 |
| Deposit recorded | 1,620,000 | 1,800,000 |
| Collection by bank 400,000 note receivable plus interest | 420,000 | - |
| NSF customer check returned | 10,000 | |
| Balances | 1,830,000 | 1,810,000 |
1. What is the amount of checks outstanding on December 31?
a. 30,000
b. 90,000
c. 60,000
d. 0
2. What is the amount of deposits in transit on December 31?
a. 480,000
b. 120,000
c. 180,000
d. 680,000
3. What is the adjusted cash in bank on December 31?
a. 1,180,000
b. 2,220,000
c. 2,240,000
d. 2,780,000
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:
| Balance per bank, November 30 | $3,281 | |
| Add: Deposits outstanding | $1,250 | |
| Less: Checks outstanding | ||
| #363 | $128 | |
| #365 | $206 | |
| #380 | $61 | |
| #381 | $91 | |
| #382 | $390 | ($876) |
| Adjusted balance per bank, November 30 | 3,655 |
The company’s general ledger checking account showed the following for December:
| Balance, December 1 | $3,655 |
| Receipts | $43,150 |
| Disbursements | ($42,353) |
| Balance, December 31 | $4,452 |
The December bank statement contained the following information:
| Balance, December 1 | $3,281 |
| Deposits | $43,500 |
| Checks processed | ($42,418) |
| Service charges | ($27) |
| NSF checks | ($490) |
| Balance, December 31 | 3,846 |
The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $430 was correctly recorded by the bank but was incorrectly recorded on the books as a $340 disbursement for advertising expenses. Included in the bank’s deposits is a $1,800 deposit incorrectly credited to the company’s account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.
Required
1. Prepare a bank reconciliation for the El Gato checking account on December 31, 2018.
2. Prepare any necessary adjusting journal entries indicated.
