Problem 7-6A Bank Reconciliation with Adjusting Entries *Assignment

Other Journal Entries :

Record to account for error in Cheque #93.

Record to reinstate customer account.

Record April loan payment

Record April interest expense.

Record April bank charges

The bank reconciliation prepared by Gemma Tours on March 31, 2020, appeared as follows: GEMMA TOURS Bank Reconciliation March 31, 2020 $14,800 Book balance $32,710 Bank statement balance Add: Deposit of March 31 in transit 21,050 $35,850 Deduct: Outstanding cheques : #79 #84 Adjusted bank balance $ 1,250 1,890 3,140 $32,710 Adjusted book balance $32,710 The Cash account in the General Ledger appeared as follows on April 30: Cash Explanation Acct. No. 101 Balance PR Debit Credit Date 2020 March April Balance 31 30 30 34, 049.00 CR11 CD14 32,710.00 66,759.00 23, 116.00 43, 643.00 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 13 18 23 27 30 Total April Cash Receipts $14,200 850 13,600 945 1,890 2,564 $34,049 Cheques Written No. 91 92 93 94 95 96 97 98 99 100 $ 1,200 5,230 2,590 3,452 2,900 1,811 8,470 2,900 8,590 6,500 $43,643 Total April Cash Disbursements The following bank statement is available for April: (Note: The bank deposits interest into the bank account at the end of every month.) Bank Statement To: Gemma Tours Cheques/Charges Deposits/Credits #93 04/02 #92 04/07 #84 04/13 NSF 04/18 #95 04/23 #99 04/27 #96 04/30 #97 04/30 #94 04/30 PMT 04/30 INT 04/30 SC 04/30 NSF = Not Sufficient Funds 2,509 5,230 1,890 6,540 2,900 8,590 1,811 8,470 3,452 9,420 35 55 SC = Service Charge 04/03 04/07 04/13 04/18 04/23 04/27 04/30 INT 21,050 14,200 850 13,600 945 1,899 2,564 46 April 30, 2020 Bank of Montreal Balance 14,800 33, 341 42, 311 41,271 48,331 46,376 39,676 40,429 32,005 28,553 19,133 19,098 19,043 INT = Interest PMT = Principal Payment In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #93, for delivery expense, was recorded in the Cash Disbursements Journal incorrectly as $2,590. The NSF cheque was that of customer Laura Clark, deposited in April. a. Prepare a bank reconciliation at April 30. GEMMA TOURS Bank Reconciliation April 30, 2020 Bank Statement Company's Books Bank statement balance Add: Book balance Add: Deduct: Deduct: Outstanding cheques: Adjusted bank balance Adjusted book balance b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation. View transaction list Journal entry worksheet 2 3 3 4 5 6 > Record interest earned. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30