P6-5 (Static) Preparing a Bank Reconciliation and Related Journal Entries LO6-4

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

The April 30, Current year, bank statement and the April ledger account for cash showed the following (summarized):

(Checks ) ( Deposits ) ( Balance)

BANK STATEMENT
Balance, April 1, Current Year										$	31,000
Deposits during April						$	37,100				68,100
Interest collected							1,180				69,280
Checks cleared during April		$	43,000								26,280
NSF checkA. B. Wright			160								26,120
Bank service charges			50								26,070
Balance, April 30, Current Year											26,070

Cash (A)
Apr. 1 Balance	23,500	Apr. Checks written	41,100
Apr. Deposits	41,500

A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $5,600 (including $3,700 written before and $1,900 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

P6-5 Part 2

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

Record the entry for deposits during April:

Transaction	General Journal	Debit	Credit
A

Record the entry for checks cleared during April:

Transaction	General Journal	Debit	Credit
B

Record interest collected:

Transaction	General Journal	Debit	Credit
C

Record customer's check returned, insufficient funds:

Transaction	General Journal	Debit	Credit
D

Record the bank service charges deducted from bank statement:

Transaction	General Journal	Debit	Credit
E