Prepare a bank reconciliation and record adjustments

The following
information is available to reconcile Severino’s Co.’s book balance of cash with
its bank statement cash balance as of December 31, 2013.
A.) The December 31st cash
balance according to the accounting records is $32,878.30, and the bank statement
cash balance for that date is $46,822.40.
B.) Check No. 1273 for $4,589.30 and Check
No. 1282 for $400, both written and entered in the accounting records in
December, are not among the canceled checks. Two checks, No 231 for $2,289 and
no. 1242 for $410.40, were outstanding on the most recent November 30th
reconciliation. Check No. 1231 is listed with the December canceled checks, but
Check No. 1242 is not.
C.) When the December checks are compared
with entries in the accounting records, it is found that Check No. 1267 had
been correctly drawn for $3,456 to pay for office supplies but was erroneously
entered in the accounting records as $3,465.
D.) Two debit memorandum are enclosed with
the statement and are unrecorded at the time of the reconciliation. One debit
memorandum is for $762.50 and dealt with an NSF check for $745 received from
the customer, Titus Industries, I payment of its account. He bank assessed a
$17.50 fee for processing it. The second debit memorandum is a $99 charge for
check printing. Severino did not record these transactions before receiving the
statement.
E.) A credit memorandum indicates that the
bank collected $19,000 cash on a note receivable for the company, deducted a
$20 collection fee, and credited the balance to the company’s cash account.
Severino did not record this transaction before receiving the statement.
F.) Severino’s December 31st
daily cash receipts of $9,583.10 were placed in the bank’s night depository on
that date, but do not appear on the December 31st bank statement.
Answer
questions
1.
Prepare
the bank reconciliation for this company as of December 31, 2013.
2.
Prepare
the journal entries (in dollars and cents) necessary to bring the company’s
book balance of cash into conformity with the reconciled cash balance as of
December 31, 2013.
3.
Explain
the nature of the communications conveyed by a bank when the bank sends the deposit
(a) a debit memorandum and (b) a credit memorandum.