Stewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31:

A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

The following bank statement is available for April:

In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #28, for delivery expense, was recorded in the Cash Disbursements Journal correctly as $4,900. The NSF cheque for $14,200 was that of customer Oprah Winney, deposited in March.
On the bank statement, the payment for $15,900 is regarding a note payable. There is also a deposit of $120,000 dated April 30. It is an investment made by the owner into the business (the bank transferred the funds electronically from the owner's personal account to his business account, which is why it was not recorded in the Cash Receipts Journal).
Required
a. Prepare bank reconciliation for Stewart Recording Studio at April 30.
b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.

Transcribed Image Text:

Stewart Recording Studio Bank Reconciliation March 31, 2014 Bank statement balance Add $22,100 Book balance $30,945 Deposit of March 31 in transit 10,000 $32,100 Deduct: Outstanding cheques: #14 #22 $840 315 1,155 Adjusted bank balanc. 530,945Adjusted book balance $30,945 Cash Acct. No. 101 Explanation Debit Credit Balance Date 2014 Apr. 30 PR 30,945 102,385 11,213 Mar 3 Blance 71,440 CR17 CD13 30 91,172 Deposlts Made Cheques Written 13 18 23 27 30 3,150 940 310 4,230 4,900 19,630 41,000 412 11,400 $91,172 4,600 5,900 13,900 1,750 44,600 24 27 28 30 32 Total April Cash Receip $71,440 2 Total April Cash Disbursernents. Bank Statement To: Stewart Recording Studio April 30, 2014 Bank of Canada Cheques/Charges Deposits/Credits Balance #31 #28 #26 NSF #24 #23 #29 PMT INT 04/03 04/07 04/13 04/18 04/23 04/27 04/30 04/30 04/30 04/30 412 9,400 310 14,200 3,150 5,200 19,630 15.900 450 175 04/03 04/07 04/13 04/18 04/23 04/27 04/30 10,000 690 4,600 5,900 13,900 .750 120,000 22,100 31,688 22,978 27,268 18,968 29,718 26,268 126,638 110,738 110,288 SC 110,113 NSF Not Sufficient SC Service Charge PMT Payment of INT Interest Funds Principal on the Loan on Bank Loan