On April 30, First Blade receives its bank statement. The bank statement balance of cash as of April 30 is $3,490. The company deposits its receipts in the bank and makes all payments by check. There is a $110 debit memo on the bank statement. This is for an NSF check written by one of the companys customers, R. Jacobs for $100 plus a bank fee of $10. The April 29th deposit for $154 was recorded in the companys cash account for $145. There is a $1000 credit memo on the bank statement. This is for a note receivable collected by the bank on behalf of the company. The note is for customer A. Tolbert and is $900 principle plus $100 of interest. On the same day, the bank withdrew $40 from the companys account as afee for collecting the note receivable. There are two other debit memos on the bank statement, the first for $35 for a bank service charge on April 30 and the second for $80 for a check printing charge on April 20. On April 30 the bank credited the companys account for $8 for interest earned.

The Ledger balance of cash as of April 30 is $967. Outstanding checks as of April 30 are number 1945 for $3,021 and number 1487 for $200. The accountant notes that the deposit made on April 30 for $1,450 does not appear on the bank statement.

Instructions

1. Complete the bank reconciliation as of April 30 using the information above. 2. Prepare the necessary journal entries that affected the ledger balance of cash.

$ 3,490.00 1 First Blade 2 Bank Reconciliation 3 April 30, 20xx 4 5 Bank Statement Balance 6 7 Add: Deposit in Transit 8 9 Deduct: Outstanding Checks 10 11 12 13 Adjusted Bank Statement Balance 14 15 Ledger Balance of Cash 16 17 Add: 18 19 20 21 22 Deduct: NSF Check R. Jacobs 23 110.00 24 25 26 27 28 29 Adjusted Ledger Balance of Cash 30 31 32 A B C D E F H General Journal Post Ref Date Description Debit Credit 20xx 1 2 3 4 5 6 1 2 7 8 9 ## ## ## ## ## ## ## ## ##1 ## ## ## ##