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, Current year, bank statement and the April ledger account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance, April 1, Current Year Balance $ 31,000 Deposits during April $ 68,100 37,100 Interest collected 1,180 69,280 Checks cleared during April $ 26,280 43,000 NSF check-A. B. Wright 160 26,120 Bank service charges 50 26,070 Balance, April 30, Current Year 26,070 Cash (A) Debit Credit April 1 Balance April Deposits 23,500 April Checks written 41,500 41,100 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 (including $3,700 written before and $1,900 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April. 2. Prepare the journal entries that the company should make as a result of the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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, Current year, bank statement and the April ledger account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance, April 1, Current Year Balance $ 31,000 Deposits during April $ 68,100 37,100 Interest collected 1,180 69,280 Checks cleared during April $ 26,280 43,000 NSF check-A. B. Wright 160 26,120 Bank service charges 50 26,070 Balance, April 30, Current Year 26,070 Cash (A) Debit Credit April 1 Balance April Deposits 23,500 April Checks written 41,500 41,100 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 (including $3,700 written before and $1,900 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April. 2. Prepare the journal entries that the company should make as a result of the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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, Current year, bank statement and the April ledger account for cash showed the following (summarized):
BANK STATEMENT
Checks
Deposits
Balance, April 1, Current Year
Balance
$ 31,000
Deposits during April
$
68,100
37,100
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, Current Year
26,070
Cash (A)
Debit
Credit
April 1 Balance
April Deposits
23,500 April Checks written
41,500
41,100
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 (including $3,700 written before and $1,900 written during April). No deposits in
transit were carried over from March, but a deposit was in transit at the end of April.
2. Prepare the journal entries that the company should make as a result of the bank reconciliation.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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