ACCT2020 The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here (A+)

(ACCT2020) The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here.

HORSMAN COMPANY

Bank Reconciliation

October 31, 2012

Cash balance per bank $12,641.85

Add: Deposits in transit 1,530.20

14,172.05

Less: Outstanding checks

Check Number Check Amount

2451 $1,260.40

2470 720.10

2471 844.50

2472 428.03

2474 1,050.00 4,303.03

Adjusted cash balance per bank $9,869.02

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 Amount Date Amount

11-1 2470 $720.10 11-1 $1,530.20

11-2 2471 844.50 11-4 1,211.60

11-5 2474 1,050.00 11-8 990.10

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 1,740.00 11-25 2,567.30

11-18 2480 1,330.00 11-28 1,650.00

11-27 2481 695.40 11-30 1,186.00

11-30 2483 575.50 Total $16,127.90

11-29 2486 900.00

Total $12,926.20

The cash records per books for November showed the following.

Cash Payments Journal Cash Receipts Journal

Date Number Amount Date Number Amount Date Amount

11-1 2475 $1,640.70 11-20 2483 $575.50 11-3 $1,211.60

11-2 2476 2,830.00 11-22 2484 828.27 11-7 990.10

11-2 2477 600.00 11-23 2485 974.80 11-12 2,575.00

11-4 2478 538.20 11-24 2486 900.00 11-17 1,472.70

11-8 2479 1,704.00 11-29 2487 434.00 11-20 2,954.00

11-10 2480 1,330.00 11-30 2488 755.00 11-24 2,567.30

11-15 2481 695.40 Total $14,417.87 11-27 1,650.00

11-18 2482 612.00 11-29 1,186.00

11-30 1,491.95

Total $16,098.65

The bank statement contained two memoranda.

1. A credit of $2,427.22 for the collection of a $2,285.22 note for Horsman Company plus interest of $157.00 and less a collection fee of $15.00. Horsman Company has not accrued any interest on the note.

2. A debit for the printing of additional company checks $86.23.

At November 30 the cash balance per books was $11,549.80 and the cash balance per bank statement was $18,184.54. The bank did not make any errors, but two errors were made by Horsman Company.

(a) Using the four steps in the reconciliation procedure, complete the bank reconciliation at November 30, 2012. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1. List outstanding checks in order of check number.)

(b) Prepare the adjusting entries based on the reconciliation.

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