Alternate Demonstration Problem Prepare a bank reconciliation for Katie's Koffee Kup Kafe, for the month ended April 30, 2011. The following information is available to reconcile the book balance of cash with its bank statement balance as of April 30, 2011. a. b. c. d. After all posting is complete on April 30, 2011, the company's book balance of Cash has a $20,907.50 debit balance, but its bank statement shows a balance of $24,822.25. Checks #423, 427 and 428 for $525.35, 154.42 and 1,278.54 respectively are outstanding In comparing the cancelled checks on the bank statement with the entries in the accounting records, it is discovered that check #418 was written for $325.00 but recorded in the books as $235.00 in payment of a vendor on account. The March 30, 2011 deposit of $2,548.68 was placed in the night depository after banking hours and did not appear on the bank statement. The bank statement shows a credit memorandum in the amount of $5,134.58 from Carson Palmer in collection of a note. The amount includes $5,000 of principal and $134.58 in interest. The bank statement shows a debit memorandum of $514.46 that was returned as NSF from Pete Carroll, a customer. A service charge of $25 was charged by the bank for the month of April. e. f. g. BANK Cash IN Cash OUT BOOKS Cash IN Cash OUT Bank Bal Book Bal JE Date ADJUSTING JOURNAL ENTRIES Accounts and Description Record only BOOK reconciling items! Debit Credit 1 4/30 2 4/30 3 4/30 4 4/30 5 4/30