The bookkeeper at Jefferson Company has not reconciled the bank statement with the cash account saying, "I dont have time". You have been asked to prepare a reconciliation and review the procedures with the bookkeepers.
The April 30, Current year bank statement and the april ledger account for cash showed the following (summarized):
Bank Statement
Checks | Deposits | Balance | |
Balance, April 1, Current Year | $31,600 | ||
Deposits During April | $36,700 | 68,300 | |
Interest Collected | 1,320 | 69,620 | |
Checks cleared during April | $45,400 | 24,220 | |
NFS Check-A. B. Wright | 290 | 23,930 | |
Bank Service Charges | 160 | 23,770 | |
Balance, April 30, Current Year | 23,770 |
Cash (A)
April 1 Balance 25,300 | April Checks Written 42,200 |
April Deposits 43,400 |
1) Prepare the Journal Entries that the compnay should make as a result of the bank reconciliation (If no entry is needed that no journal entry required is entered)
No. | Transaction | General Journal | Debit | Credit |
1 | A. | |||
2 | B. | |||
3 | C. | |||
4 | D. | |||
5 | E. | |||
Solution:
Journal Entries | ||||
No. | Transaction | Particulars | Debit | Credit |
1 | A | No Journal Entry Required | ||
2 | B | Cash Dr | $1,320.00 | |
To Interest revenue | $1,320.00 | |||
(Being interest credited by bank) | ||||
3 | C | No Journal Entry Required | ||
4 | D | Accounts receivables Dr | $290.00 | |
To Cash | $290.00 | |||
(To record NSF check from customer) | ||||
5 | E | Miscellenous Expenses Dr | $160.00 | |
To Cash | $160.00 | |||
(Being service charges debited by bank) |
The bookkeeper at Jefferson Company has not reconciled the bank statement with the cash account saying,...
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 STATEMENTChecksDeposits Balance Balance, April 1, 2014$32,300 Deposits during April$37,70070,000 Interest collected1,36071,360 Checks cleared during April$46,20025,160 NSF check—A. B. Wright18024,980 Bank service charges21024,770 Balance, April 30, 201424,770Cash (A) Apr. 1 Balance25,200 Apr. Checks written41,700 Apr. Deposits42,100 A comparison of checks written...
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