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												$	6,600
April 5	#101	$	800										5,800
April 9					$	3,100							8,900
April 12	#102		240										8,660
April 19	#103		700										7,960
April 22	#104		1,400										6,560
April 27								EFT payment	$	280			6,280
April 29								NSF check		140			6,140
April 30								Service charge		29			6,111

Cash (A)

April 1	Balance	6,600
April 8		3,100		800	April 2 #101
April 28		750		240	April 10 #102
				700	April 15 #103
				1,500	April 20 #104
				420	April 29 #105
April 30	Balance	6,790

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 $1,500. 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]

9.

value: 6.25 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.