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PR $7-4$B Bank reconciliation and entries

Obj. $5$

The cash account for Collegiate Sports Co$.$ on November $1,20$Y$9,$ indicated a balance of $$81,145.$ During November, the total cash deposited was $$293,150,$ and checks written totaled $$307,360.$ The bank statement indicated a balance of $$112,675$ on November $30,20Y9.$ Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a$.$ Checks outstanding totaled $$41,840.$

b$.$ A deposit of $$12,200,$ representing receipts of November $30,$ had been made too late to appear on the bank statement.

c$.$ A check for $$7,250$ had been incorrectly charged by the bank as $$2,750.$

d$.$ A check for $$760$ returned with the statement had been recorded by Collegiate Sports Co$.$ as $$7,600.$ The check was for the payment of an obligation to Ramirez Co$.$ on account.

e$.$ The bank had collected for Collegiate Sports Co$.$ $$7,385$ on a note left for collection. The face of the note was $$7,000.$

f$.$ Bank service charges for November amounted to $$125.$

g$.$ A check for $$2,500$ from Hallen Academy was returned by the bank because of insufficient funds.

Instructions

Prepare a bank reconciliation as of November $30,20Y9.$

Journalize the necessary entries.

If a balance sheet were prepared for Collegiate Sports Co$.$ on November $30,20$Y$9,$ what amount should be reported as cash?

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