AB 116 WEEK 1 PROBLEM 8-4A

AB 116 WEEK 1 Problem 8-4A
The bank portion of the bank reconciliation for Langer Company at November 30, 2014, was as follows.
LANGER COMPANY
Bank Reconciliation
November 30, 2014
Cash balance per bank				$14,558.99
Add: Deposits in transit				2,530.20
Less: Outstanding checks				17,089.19
Check Number		Check Amount		
3451		$ 2,260.40		
3470		720.10		
3471		844.50		
3472		1,426.80		
3474		1,053.21		6,305.01
Adjusted cash balance per bank				$10,784.18

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.

Bank Statement
Checks		Deposits
Date		Number		Amount		Date		Amount
12-1		3451		$2,260.40		12-1		$ 2,530.20
12-2		3471		844.50		12-4		1,211.60
12-7		3472		1,426.80		12-8		2,365.10
12-4		3475		1,640.70		12-16		2,672.70
12-8		3476		1,300.00		12-21		2,945.00
12-10		3477		2,130.00		12-26		2,567.30
12-15		3479		3,080.00		12-29		2,836.00
12-27		3480		600.00		12-30		1,025.00
12-30		3482		475.50		Total		$18,152.90
12-29		3483		1,140.00				
12-31		3485		530.80				
		Total		$15,428.70				

The cash records per books for December showed the following.
Cash Payments Journal		Cash Receipts Journal
Date		Number		Amount		Date		Number		Amount		Date		Amount
12-1		3475		$1,640.70		12-20		3482		$475.50		12-3		$ 1,211.60
12-2		3476		1,300.00		12-22		3483		1,140.00		12-7		2,365.10
12-2		3477		2,130.00		12-23		3484		794.79		12-15		2,672.70
12-4		3478		621.30		12-24		3485		350.80		12-20		2,954.00
12-8		3479		3,080.00		12-30		3486		889.50		12-25		2,567.30
12-10		3480		600.00		Total				$13,829.99		12-28		2,836.00
12-17		3481		807.40								12-30		1,025.00
												12-31		1,690.40
												Total		$17,322.10

The bank statement contained two memoranda:
1.		A credit of $5,343.38 for the collection of a $5,198.38 note for Langer Company plus interest of $160.00 and less a collection fee of $15.00. Langer Company has not accrued any interest on the note.
2.		A debit of $576.01 for an NSF check written by L. Rees, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $14,276.29, and the cash balance per the bank statement was $22,050.56. The bank did not make any errors, but two errors were made by Langer Company.



	 
 
 	 



Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31. (Enter answers to 2 decimal places, e.g. 15.25. List items that increase cash balance first. Reconcile cash balance per bank first.)