The bank portion of the bank reconciliation for Langer Company at November 30, 2020, was as follows.
The adjusted cash balance per bank agreed with the cash balance per books at November 30.
The December bank statement showed the following checks and deposits.
The cash records per books for December showed the following.
The bank statement contained two memoranda:
1. A credit of $2,242 for the collection of Langer Company of an electronic funds transfer.
2. A debit for the printing of additional company checks $85.
At December 31, the cash balance per books was $13,985.20, and the cash balance per the bank statement was $19,239.10. The bank did not make any errors, but Langer Company made two errors.
Instructions
a. Using the steps in the reconciliation procedure described in the chapter, prepare a bank reconciliation at December 31, 2020.
b. Prepare the adjusting entries based on the reconciliation. 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.
