Bank Reconciliation and Entries The cash account for All American Sports Co. on April 1, 2015, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 2015. Comparing the bank statement, the canceled checks, and the accompanying memes with the records revealed the following reconciling items: a. Checks outstanding totaled $14,300. b. A deposit of $9,275, representing receipts of April 30, had been made too late to appear on the bank statement c. A check for $720 had been incorrectly charged by the bank as $270. d. A check for $110 returned with the statement had been recorded by All American Sports Co as $1,100. The check was for the payment of an obligation to Garber Co. on account. e. The bank had collected for All American Sports Co. $4,320 on a note left for collection. The face of the note was $4,000. 1. Bank service charges for April amounted to $75. 9. A check for $1,300 from Bishop Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of April 30. All American Sports Co. Bank Reconciliation April 30, 2015 Cash balance per bank statement Add: Deposit of April 30. not recorded by bank Deduct: Outstanding checks Deduct: Bankerror in charging check as $270 Instead of 5720 450 14.750 All American Sports Co. Bank Reconciliation April 30, 2015 40,360 Cash balance per bank statement Add: Deposit of April 30, not recorded by bank 9,275 $ 49,635 Deduct: Outstanding checks 14,300 Deduct: Bank error in charging check as $270 instead of $720 450 14,750 Adjusted balance 34,885 Cash balance per All American Sports Co. Add: Proceeds of note collected by bank, including $320 interest 30,950 Add: Error in recording check as $1,100 by company instead of $110 990 5,310 36,260 Deduct: Check returned because of insufficient funds Deduct: Bank service charges 1,375 Adjusted balance 34,885 Feedback Check My Work Increase in Cash: Balance Sheet Statement of Cash Flows Assets Liabilities Stockholders' Equity Income Statement Cash + Notes Receivable Accounts Payable V + Retained Earnings April 30 4,000 x 320 x 990 3,330 X Statement of Cash Flows Income Statement Operating 4,000 x Interest revenue 3,330 No effect No effect Decrease in Cash: Balance Sheet Statement of Cash Flows Assets Llabilities Stockholders' Equity Income Accounts Receivable Statement No Effect Retained Earnings April 30 1,375 Statement of Cash Flows Operating v 1,375 Income Statement Miscellaneous administrative expense No effect No effect
