CP5-2 Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4, LO 5-5]

[The following information applies to the questions displayed below.]

The April 30 bank statement for KMaxx Company and the April ledger account for cash are summarized here:

BANK STATEMENT
	Checks				Deposits			Other				Balance
Balance, April 1												$	5,400
April 5	#101	$	580										4,820
April 9					$	1,900							6,720
April 12	#102		140										6,580
April 19	#103		350										6,230
April 22	#104		700										5,530
April 27								EFT payment	$	150			5,380
April 29								NSF check		90			5,290
April 30								Service charge		20			5,270

Cash (A)

April 1	Balance	5,400
April 8		1,900		580	April 2 #101
April 28		380		140	April 10 #102
				350	April 15 #103
				800	April 20 #104
				200	April 29 #105
April 30	Balance	5,610

No outstanding checks and no deposits in transit were noted in March. However, there are deposits in transit and checks outstanding at the end of April. The EFT involved an automatic monthly payment to one of KMaxxs creditors. Check #104 was written for $800. The NSF check had been received from a customer.

References

Section BreakCP5-2 Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4, LO 5-5]

7.

value: 1.60 points

Required information

CP5-2 Part 1

Required:

1.	Prepare a bank reconciliation for April.
	TIP: Put a check mark beside each item that appears on both the bank statement and whats already been recorded in the accounting records (shown in the T-account). Items left unchecked will be used in the bank reconciliation.

References

eBook & Resources

WorksheetDifficulty: 2 MediumLearning Objective: 05-05 Explain the reporting of cash.

CP5-2 Part 1Learning Objective: 05-04 Perform the key control of reconciling cash to bank statements.

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8.

value: 1.60 points

Required information

CP5-2 Part 2

2.	Prepare any journal entries that should be made as a result of the bank reconciliation.
	TIP: Remember to make entries only for items that affect the companys books, not the bank. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1: Record the electronic funds transfer of $150 made to a creditor.

2: Record the return of the customer check of $90 due to insufficient funds.

3: Record the service charges of $20 deducted by the bank.

Required information

CP5-2 Part 3

3.	What should the balance in the Cash account be after recording the journal entries in part 2?

Balance In Cash Account:

Required information

CP5-2 Part 4

4.	If the company also has $880 of petty cash on hand (recorded in a separate account), what total amount should the company report as Cash and Cash Equivalents on the April 30 balance sheet?

Total Amount of Cash and Cash Equivalents: