Bank Reconciliation The bank reconciliation made by Sandler Company, a sole proprietorship, on March 31 showed: Deposit in transit of $1.100 Outstanding checks no.797 $450 0,304 The reconciled cash balance on March 31 wes $11.720 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, $1,100 904 Apr. 2 $990 Mar. 31 $11,960 3 3 1.690 907 730 Apr. 1 13.050 7 7 1.250 306 7 1.140 2 12170 13 1.020 30 7 838 3 13.120 18 840 810 16 1.040 7 12,392 23 790 811 13 320 13 13.080 27 1.340 913 27 540 16 12.046 20 1.160 914 23 600 16 12.396 30 IN 60 NSF 16 500 23 12.575 5C 30 40 13,376 30 Item codes EC: Error Correction DM: Debit Memo CM: Credit Mema SC Service Charge OD: Overdral RT: Returned item IN Interest Camed NSF: Non-sufficient Funds A list of deposits made and checks written during April is shown below. Deposits Made Checks written Apr. 2 2 51.660 No. 607 5730 6 6 1.250 606 1.140 10 1.020 800 838 17 340 810 22 290 911 24 1.340 812 948 29 1.160 813 540 30 1.425 814 600 $9,505 915 372 816 875 57.355 The Cash in Bank account balance on April 30 was $13,870. In reviewing checks returned by the bank, the accountant discovered that check No. 811 written for $326 for delivery expense, was recorded in the cash disbursements journal as S272. T 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. The Cash in Bank account balance on April 30 was $13,870. In reviewing checks returned by the bank, the accountant discovered that check No. 811 written for $326 for delivery expense, was recorded in the cash disbursements journal as $272. TH Required a. Prepare a bank reconciliation for Sandler Company at April 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 Ending Balance from Bank Statement Add: Deposits not credited by bank SANDLER COMPANY Bank Reconciliation April 30 0 X Balance from General Ledger 0X Add: Interest Earned OX OX Less: NSF Check R. Koppa Less: Outstanding checks (list in numerical order) Check no. Amount 0 x 0 x Reconciled Cash Balance $ Service charge Error in recording Check No. 811 0 x Reconciled Cash Balance OX $ $ Check 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 Debit Credit $ 0X $ 0 OX 0 0 x General Journal Date Description April 30 Cash in Bank Interest Income To record interest earned on bank account for April. 30 Accounts Receivable Cash in Bank To reclassify NSF check as an accounts receivable. 30 Miscellaneous Expense Cash in Bank To record bank service charge. 30 Delivery Expense Cash in Bank To correct error in recording check 811. OX 0 0 x 0 0 OX