The bookkeeper at Hopkins 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, 2012, bank statement and the April ledger accounts for cash showed the following (summarized):

A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of \(\$ 4,100\) are still outstanding at April 30 . No deposits in transit were carried over from March, but a deposit was in transit at April 30.
Required:
1. Prepare a detailed bank reconciliation at April \(30,2012\).
2. Prepare any required journal entries as a result of the reconciliation. Why are they necessary?
3. What were the balances in the cash accounts in the ledger on May 1, 2012?
4. What total amount of cash should be reported on the statement of financial position at April 30, \(2012 ?\)

Transcribed Image Text:

Balance, April 1, 2012 Deposits during April Notes collected for company (including $70 interest) NSF cheque-A. B. Wright Cheques cleared during April Bank service charges Balance, April 30, 2012 Bank Statement Cheques Deposits Balance $31,000 $36,100 67,100 1,180 68,280 $44,500 160 70 23.780 23,620 23,550 23,550 Cash In Bank Apr. 1 Balance 23,500 Apr. Cheques written 41,100 Apr. Deposits 41,500 1 Cash on Hand Apr. 30 Balance 100