Bank Reconciliation The bank reconciliation made by Sandler Company, a sole proprietorship, on March 31 showed:

Deposit in transit of		$1,430
Outstanding checks	no.797	$585
	no.804	$1,157
The reconciled cash balance on March 31 was		$15,236

The following bank statement is available for April 2012.

Bank Statement
TO		Sandler Company											April 30
		Fairbanks, AK						FAIRBANKS NATIONAL BANK
Date		Deposits		No.		Date		Charges			Date		Balance
Apr.	1	$1,430		804		Apr.	2	$1,157			Mar.	31	$15,548
	3	2,184		807			3	949			Apr.	1	16,978
	7	1,625		808			7	1,482				2	15,821
	13	1,326		809			7	1,089				3	17,056
	18	1,092		810			16	1,352				7	16,110
	23	1,027		811			13	424				13	17,012
	27	1,742		813			27	702				16	15,660
	30	1,508		814			23	780				18	16,102
	30 IN	78		NSF			18	650				23	16,349
				SC			30	52				27	17,389
												30	18,923
Item codes		EC: Error Correction				DM: Debit Memo					CM: Credit Memo
		SC: Service Charge				OD: Overdraft					RT: Returned Item
		IN: Interest Earned				NSF: Non-sufficient Funds

A list of deposits made and checks written during April is shown below:

Deposits Made				Checks Written
Apr.	2	$2,184		No.	807	$949
	6	1,625			808	1,482
	10	1,326			809	1,089
	17	1,092			810	1,352
	22	1,027			811	354
	24	1,742			812	1,232
	29	1,508			813	702
	30	1,853			814	780
		$12,357			815	484
					816	1,138
						$9,562

The Cash in Bank account balance on April 30 was $18,031. In reviewing checks returned by the bank, the accountant discovered that check No. 811 written for $424 for delivery expense, was recorded in the cash disbursements journal as $354. The NSF check for $650 was that of customer R. Koppa, deposited in April. Required a. Prepare a bank reconciliation for Sandler Company at April 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

• Bank reconciliation
• Journal entries

General Journal
Date		Description	Debit	Credit
April	30	AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income	Answer	Answer
		AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income	Answer	Answer
		To record interest earned on bank account for April.
	30	AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income	Answer	Answer
			Answer	Answer
		To reclassify NSF check as an accounts receivable.
	30		Answer	Answer
			Answer	Answer
		To record bank service charge.
	30	AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income	Answer	Answer
		AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income	Answer	Answer
		To correct error in recording check 811.