Problem 3-7

Nov. 30 Receipts Disbursements Dec. 31

Book balance 2,032,000 2,568,000 1,440,000 3,160,000
Bank service charge
November 30 (2,000) (2,000)
December 31 4,000 (4,000)
Collection of note
November 30 (200,000) 200,000
December 31 (300,000) (300,000)
Adjusted book balance 1,830,000 2,468,000 1,442,000 2,856,000

Bank balance 1,890,000 2,090,000 1,080,000 2,900,000

Outstanding checks
November 30 (180,000) (180,000)
December 31 592,000 (592,000)
Deposit in transit
November 30 80,000 (80,000)
December 31 498,000 498,000
Check erroneously charged by bank
November 30 40,000 (40,000)
December 31 (50,000) 50,000
Adjusted bank balance 1,830,000 2,468,000 1,442,000 2,856,000

Adjusting entry:

Bank service charge 4,000

Note receivable 300,000
Cash in bank 304,000