P6-12 Preparing a Bank Reconciliation and Related Journal Entries LO6-7

The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, I dont have time. You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.

The April 30, 2021, bank statement and the April ledger accounts for cash showed the following (summarized):

Bank Statement
	Cheques			Deposits			Balance
Balance, April 1, 2021							$	34,800
Deposits during April				$	38,000			72,800
Notes collected for company (including $89 interest)					1,370			74,170
Cheques cleared during April	$	46,400						27,770
NSF chequeA. B. Wright		179						27,591
Bank service charges		89						27,502
Balance, April 30, 2021								27,502

Cash in Bank
Apr. 1 Balance	25,400	Apr. Cheques written	43,000
Apr. Deposits	44,350

Cash on Hand
Apr. 30 Balance	290

A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $6,000 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30.

Required:

1. Prepare a detailed bank reconciliation at April 30, 2021.

2. Prepare any required journal entries as a result of the reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. What were the balances in the cash accounts in the ledger on May 1, 2021?

4. What total amount of cash should be reported on the statement of financial position at April 30, 2021?