Question
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
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 a fee 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. I 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.
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