Question

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										$	32,300
Deposits during April						$	37,700				70,000
Interest collected							1,360				71,360
Checks cleared during April		$	46,200								25,160
NSF check—A. B. Wright			180								24,980
Bank service charges			210								24,770
Balance, April 30, 2014											24,770

Cash (A)

Apr. 1   Balance	25,200		Apr.    Checks written	41,700
Apr.      Deposits	42,100

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 $2,600. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

Answer 1