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?
| 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 | $ 23,900 | Ending balance per bank statement | $ 26,070 | |||
| Additions: | Additions: | |||||
Total amount of cash
