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CF Unit3 P6-6 The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account,

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
Solution file name: CF unit3 P6-6.xls  File type: .xls PRICE: $10