Chapter 7: Bank Reconciliation An analysis of the April 2020 bank statement and company data for Jasper Company reveals the following information (Points 1 to 9): 2. Bank statement balance April 30 was $27,500. 2. The cash account in the general ledger had a balance of $27,680. 3. 4. Outstanding cheques as of April 30 were $10,000. Cash receipts on April 30th of $18,000 were deposited late and cleared the bank May 1st. 5. R.U. Syck's NSF cheque for $1,400 was returned with the bank statement. The company had no prior knowledge of this. 6. An April deposit for $1,800 for Jasper Company, was deposited to another company's bank account in error. 7. April bank charges were $550. 8. bank. A deposit of $4,150 was erroneously credited to Jasper Company by the 9. A credit memo was included with the bank statement. This was a $7,000 notes receivable that was collected by the bank on behalf of Jasper Company. The bank also collected an additional $420 in interest for Jasper. Required: Prepare the bank reconciliation on a piece of paper. (You may reference points 1 to 9.) The controller will then ask you questions about your bank reconciliation below: 1) The bank reconciliation starts with the Balance per bank at point #1. $27,500. What are the items that are ADDE 07. Less Bank charges $550 08. Less Bank Error: Deposit to Jasper Company $4,150 De a). Less Credit Memo: Notes Receivable $7,000 9b). Less Credit Memo: Interest $420 Time loft 1:10:51 3) After completing the bank side, the next step in the bank reconciliation is the Balance per books at point #2. $27,680. What are the items that are ADDED to the books side? Select ALL that apply. 3. Add Outstanding cheques $10,000 4. Add deposit in transit $18,000 5. Add R.U. Syck (NSF) $1,400 06. Add Bank Error: Deposit to another company $1,800 7. Add Bank charges $550 08. Add Bank Error: Deposit to Jasper Company $4,150 D9a). Add Credit Memo: Notes Receivable $7,000 09 b). Add Credit Memo: Interest $420 4) After completing the bank side, the next step in the bank reconciliation is the Balance per books at point #2. $27,680. What are the items that are DEDUCTED from the books side? Select ALL that apply. 3. Less Outstanding cheques $10,000 04. Less deposit in transit $18,000 05. Less R.U. Syck (NSF) $1,400 06. Less Bank Error: Deposit to another company $1,800 07. Less Bank charges $550 08. Less Bank Error: Deposit to Jasper Company $4,150 09 a). Less Credit Memo: Notes Receivable $7,000 9 b). Less Credit Memo: Interest $420 3) After completing the bank side, the next step in the bank reconciliation is the Balance per books at point #2. $27.680. What are the items that are ADDED to the books side? Select ALL that apply. C3, Add Outstanding cheques $10,000 4. Add deposit in transit $18,000 5. Add R.U. Syck (NSF) $1,400 06. Add Bank Error: Deposit to another company $1,800 07. Add Bank charges $550 C8. Add Bank Error: Deposit to Jasper Company $4,150 9a). Add Credit Memo: Notes Receivable $7,000 9b). Add Credit Memo: Interest $420 4) After completing the bank side, the next step in the bank reconciliation is the Balance per books at point #2. $27,680. What are the items that are DEDUCTED from the books side? Select ALL that apply. 3. Less Outstanding cheques $10,000 4. Less deposit in transit $18,000 05. Less R.U. Syck (NSF) $1,400 06. Less Bank Error: Deposit to another company $1,800 07. Less Bank charges $550 08. Less Bank Error: Deposit to Jasper Company $4,150 09a). Less Credit Memo: Notes Receivable $7,000 09b). Less Credit Memo: Interest $420