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Bank Reconciliation The bank reconciliation made by Sandler Company, a sole proprietorship, on March 31 showed: Deposit in transit of $1,320 Outstanding checks no.797 $540

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

Deposit in transit of $1,320
Outstanding checks no.797 $540
no.804 $1,068
The reconciled cash balance on March 31 was $14,064

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 $1,320 804 Apr. 2 $1,068 Mar. 31 $14,352
3 2,016 807 3 876 Apr. 1 15,672
7 1,500 808 7 1,368 2 14,604
13 1,224 809 7 1,006 3 15,744
18 1,008 810 16 1,248 7 14,870
23 948 811 13 391 13 15,703
27 1,608 813 27 648 16 14,455
30 1,392 814 23 720 18 14,863
30 IN 72 NSF 18 600 23 15,091
SC 30 48 27 16,051
30 17,467
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 $2,016 No. 807 $876
6 1,500 808 1,368
10 1,224 809 1,006
17 1,008 810 1,248
22 948 811 326
24 1,608 812 1,138
29 1,392 813 648
30 1,710 814 720
$11,406 815 446
816 1,050
$8,826

The Cash in Bank account balance on April 30 was $16,644. In reviewing checks returned by the bank, the accountant discovered that check No. 811 written for $391 for delivery expense, was recorded in the cash disbursements journal as $326. The NSF check for $600 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. a.

SANDLER COMPANY Bank Reconciliation April 30
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance $Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance $Answer
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance Answer
Answer Answer
Less: Outstanding checks (list in numerical order) Less: NSF Check R. Koppa Answer
Check no. Amount
Answer Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance Answer
Answer Answer Error in recording
Answer Answer Check No. 811 Answer
Answer Answer Answer Answer
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance $Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankAdd: Interest EarnedService chargeReconciled Cash Balance $Answer

b.

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
AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income Answer Answer
To reclassify NSF check as an accounts receivable.
30 AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income Answer Answer
AnswerAccounts ReceivableAdvertising ExpenseCash in BankMiscellaneous ExpenseDelivery ExpenseInterest Income 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.

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