P6-6

Preparing a Bank Reconciliation and Related Journal Entries LO6-5 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, 2014, bank statement and the April ledger accounts for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance Balance, April 1, 2014 $ 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, 2014 26,070 Cash Apr. 1 Balance 23,500 41,100 Apr. Checks written 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. No deposits in transit were carried over from March, but a deposit was in transit at the end of April. Required: 1 Prepare a detailed bank reconciliation for April. Possible input areas are shaded. JEFFERSON COMPANY Bank Reconciliation April 30, 2014 Company's Books Bank Statement Ending balance per cash account Ending balance per bank statement Additions: Additions: - - - - Deductions: Deductions: - - Correct cash balance Correct cash balance $24,870 Required: 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.) Transaction General Journal Debit Credit 1 2 3 Required: 3 What was the balance in the cash account in the ledger on May 1, 2014? Cash balance 4 What total amount of cash should be reported on the balance sheet at the end of April? Total amount of cash IO