[stephanie_hastings4]

OK, so I'm having truoble with my hw...

The bank portion of the bank reconciliation for Kingston Company at Oct. 31, 2007 is shown here:

Kingston Company
Bank Reconciliation
October 31, 2007

Cash balance per bank $12,367.50
Add: Deposits in transit 1,530.20
13,898.10

Less: Outstanding Checks
Check Number[/U][/U] Check Amount
2451 $1,260.40
2470 720.10
2471 844.50
2472 426.80
2474 1,050.00 4,301.30

Adjusted cash balance per bank $ 9,596.30

The adjusted bank cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits

Checks
Date number amount
11-1 2470 720.10
11-2 2471 844.50
11-5 2474 1,050.00
11-4 2475 1,640.70
11-8 2476 2,830.00
11-10 2477 600.00
11-15 2479 1,750.00
11-18 2480 1,330.00
11-27 2481 695. 40
11-30 2483 575.50
11-29 2487 398.00
Total: $12,434.20

Deposits
Date amount
11-1 1,530.20
11-4 1,211.60
11-8 990.10
11-13 2,575.00
11-18 1,472.70
11-21 2,945.00
11-25 2,567.30
11-28 1,650.00
11-30 1,186.00
Total $16,127.90

The cash records per books for November showed the following:

Cash payments journal
Date number amount
1-Nov 2475 1640.7
2-Nov 2476 2830
2-Nov 2477 600
4-Nov 2478 538.2
8-Nov 2479 1,570.00
10-Nov 2480 1,330.00
15-Nov 2481 695.4
18-Nov 2482 612
20-Nov 2483 575.5
22-Nov 2484 829.5
23-Nov 2485 974.8
24-Nov 2486 900
29-Nov 2487 398
30-Nov 2488 800
Total 14,249.10

Cash receipts journal
Date amount
3-Nov 1,211.60
7-Nov 990.1
12-Nov 2,575.00
17-Nov 1,472.70
20-Nov 2,954.00
24-Nov 2,567.30
27-Nov 1,650.00
29-Nov 1,186.00
30-Nov 1,218.00
Total 15,824.70

The bank statement contained two bank memoranda
1) a credit of $1875 for the collection of an 1,800 note for Kingston Company plus interest of $90 and less a collection fee of $15. Kingston company has not accrued any interest on the note.
2) a debit for the printing of additional company checks $85.

At November 30 the cash balance per books was $11,126.90 and the cash balance per bank statement was $17,851.60. The bank did not make any erros, but two errors were made by Kingston company

Objectives:
a.) using the four steps in the reconciliation procedure, prepare a bank reconciliation at November 30, 2007.
b) prepare the adjusting entries based on the reconciliation. (note: the correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable)

[pready]

First check for recording amount errors on the checks and deposits
On the Bank Balance side first add the Bank Balance and any Deposts that are in transit.
Next deduct the outstanding checks.

On company's balance sheet:
First add the company balance to any deposits made by bank to your account.
Then Deduct any automatic payments or fees charged by bank (like Service Fees) that have not been recorded on company's books.
Add or deduct Recording errors:

The adjusted Bank balance and company's book balance should now be the same.

If not continue to work out until they are the same.

Adjusting entries will be for adjustments made to company's book balance

Adjusted bank balance and company book balance will be $12,727.90

Journal entries needed are for the note collected, interest and collection fee
Checks printed, and the two recording errors: 1 for a deposit made and 2 for a check written