CF Unit3 P6-6 The bookkeeper at Jefferson Company has not reconciled the bank
statement with the Cash account,
P6-6 Preparing a Bank Reconciliation
and Related Journal Entries LO6-5
The bookkeeper at Jefferson Company has
not reconciled the bank statement with the Cash account, saying, “I don’t have
time.” You have been asked to prepare a
reconciliation and review the procedures with the bookkeeper.
The April 30, 2014, bank statement and
the April ledger accounts for cash showed the following (summarized):
BANK STATEMENT
Checks Deposits Balance
Balance, April 1, 2014 $31,000
Deposits during April $37,100 68,100
Interest collected 1,180 69,280
Checks cleared during April $ 43,000 26,280
NSF check—A. B. Wright 160 26,120
Bank service charges 50 26,070
Balance, April 30, 2014 26,070
Cash
Apr. 1 Balance 23,500 41,100
Apr. Checks written Apr.
Deposits 41,500
A comparison of checks written before
and during April with the checks cleared through the bank showed outstanding
checks at the end of April of $5,600. No deposits in transit were carried over
from March, but a deposit was in transit at the end of April.
Required:
1. Prepare a detailed bank
reconciliation for April.
Possible input areas are shaded.
JEFFERSON COMPANY
Bank Reconciliation
April 30, 2014
Company's Books Bank
Statement
Ending balance per cash account Ending
balance per bank statement
Additions: Additions:
Deductions: Deductions:
Correct cash balance Correct
cash balance $24,870
Required:
2 Prepare the journal entries that the
company should make as a result of the bank reconciliation. (If no entry is
required for a transaction/event, select "No journal entry required"
in the first account field.)
Transaction General Journal Debit Credit
1
2
3
Required:
3 What was the balance in the cash
account in the ledger on May 1, 2014?
Cash balance
4 What total amount of cash should be
reported on the balance sheet at the end of April?
Total amount of cash
