Question

Cullumber Food Store used the following information in recording its bank reconciliation for the month of April. Balance per books April 30 Balance per bank statement April 30 $950 $13,700 (1) (2) (3) (4) (5) Checks written in April but still outstanding $7,960. Checks written in March but still outstanding $3,500. Deposits of April 30 not yet recorded by bank $4,800. NSF check of customer returned by bank $500. Check No. 210 for $783 was correctly issued and paid by the bank but incorrectly entered in the cash payments journal as payment on account for $738. Bank service charge for April was $55. A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $725 when Check No. 318 was correctly prepared for $275. The check cleared the bank in April. The bank collected a note receivable for the company of $6,000 plus $240 interest revenue. (6) (7) (8)

Answer 1

	Cullumber Food Store
	Bank Reconciliation
	Apr-30
	Balance as per Bank		$     13,700
Add:	Deposit in transit		$       4,800
			$     18,500
Less:	Outstanding checks - April	$   7,960
	Outstanding checks - March	$   3,500
			$     11,460
	Adjusted bank balance		$       7,040
	Balance as per Books		$           950
Add:	Notes collection including interest	$   6,240
	Bank error	$       450
			$       6,690
			$       7,640
Less:	Bank service charges	$         55
	Bank error	$         45
	NSF checks	$       500
			$           600
	Adjusted book balance		$       7,040