The Wildhorse Boat Company's bank statement for the month of November showed a balance per bank of $8,800. The company's Cash account in the general ledger had a balance of $6,976 at November 30. Other information is as follows: (1) Cash receipts for November 30 recorded on the company's books were $7,640 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $50 for check printing charges. (3) Check No. 119 payable to Sandhill Company was recorded in the cash payments journal and cleared the bank for $357. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sandhill Company and that the payment to them should have been for $375. (4) The total amount of checks still outstanding at November 30 amounted to $6,160. (5) Check No. 138 was correctly written and paid by the bank for $406. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $460. (6) The bank returned an NSF check from a customer for $570. (7) The bank included a credit memorandum for $3,870 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,739 and interest was $131. Interest has not been accrued. (a) Prepare a bank reconciliation for the Wildhorse Boat Company at November 30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Wildhorse Boat Company's bank statement for the month of November showed a balance per bank of $8,800. The company's Cash account in the general ledger had a balance of $6,976 at November 30. Other information is as follows:

(1)		Cash receipts for November 30 recorded on the company's books were $7,640 but this amount does not appear on the bank statement.
(2)		The bank statement shows a debit memorandum for $50 for check printing charges.
(3)		Check No. 119 payable to Sandhill Company was recorded in the cash payments journal and cleared the bank for $357. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sandhill Company and that the payment to them should have been for $375.
(4)		The total amount of checks still outstanding at November 30 amounted to $6,160.
(5)		Check No. 138 was correctly written and paid by the bank for $406. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $460.
(6)		The bank returned an NSF check from a customer for $570.
(7)		The bank included a credit memorandum for $3,870 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,739 and interest was $131. Interest has not been accrued.

(a)

Prepare a bank reconciliation for the Wildhorse Boat Company at November 30.

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