10/17/2016

Problem 7-4A

Print by: STEPHANIE REYES

Class 12091 Sec 12-Dis Fall 16 / HW #6 (Chapter 7)

*Problem 7-4A
The bank portion of the bank reconciliation for Sheridan Company at October 31, 2017, is shown
below.
SHERIDAN COMPANY
Bank Reconciliation
October 31, 2017
Cash balance per bank

$12,527.90

Add: Deposits in transit

1,530.20
14,058.10

Less: Outstanding checks

Check Number

Check Amount

2451

$ 1,260.40

2470

684.20

2471

844.50

2472

432.90

2474

1,050.00

4,272.00
$9,786.10

Adjusted cash balance per bank

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

Deposits

Date

Number

Date

Amount

11-1

2470

Amount
$ 684.20

11-1

$ 1,530.20

11-2

2471

844.50

11-4

1,211.60

11-5

2474

1,050.00

11-8

11-4

2475

1,640.70

11-13

2,575.00

11-8

2476

2,830.00

11-18

1,472.70

11-10

2477

600.00

11-21

2,945.00

11-15

2479

1,730.00

11-25

2,567.30

11-18

2480

1,330.00

11-28

1,650.00

11-27

2481

695.40

11-30

11-30

2483

575.50

11-29

2486

940.00

Total

990.10

1,186.00
16,127.90

Total

$12,920.30

The cash records per books for November showed the following.
Cash Payments Journal
Date

Cash Receipts Journal

Number

Amount

Date

Number

11-1

2475

$1,640.70

11-20

2483

$ 575.50

11-3

11-2

2476

2,830.00

11-22

2484

823.40

11-7

11-2

2477

600.00

11-23

2485

974.80

11-12

2,575.00

11-4

2478

538.20

11-24

2486

940.00

11-17

1,472.70

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Amount

Date

Amount
$ 1,211.60
990.10

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Problem 7-4A

11-8

2479

1,703.00

11-29

2487

398.00

11-20

2,954.00

11-10

2480

1,330.00

11-30

2488

800.00

11-24

2,567.30

11-15

2481

695.40

$14,461.00

11-27

1,650.00

11-18

2482

612.00

11-29

1,186.00

Total

11-30
Total

1,464.00
$16,070.70

The bank statement contained two bank memoranda:

1. A credit of $2,372.00 for the collection for Sheridan Company of an electronic funds transfer.
2. A debit for the printing of additional company checks $91.10.
At November 30, the cash balance per books was $11,395.80 and the cash balance per bank
statement was $18,016.40. The bank did not make any errors, but Sheridan Company made
two errors.
Using the steps in the reconciliation procedure, prepare a bank reconciliation at November 30,
2017. (List items that increase balance as per bank & books first.)
SHERIDAN COMPANY
Bank Reconciliation
$

:
$

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10/17/2016

Problem 7-4A

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.) (Credit account
titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation

Debit

Credit

Nov
30

(To record electronic funds transfer

received by bank)
Nov
30

(To record charge for printing company

checks)
Nov
30

(To correct error in recording check)

Nov
30

(To correct error in deposit)

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