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The bank reconciliation prepared by Gemma Tours on March 31, 2020, appeared as follows:

GEMMA TOURS Bank Reconciliation March 31, 2020 Bank statement balance $ 15,600 Book balance $ 34,478 Add: Deposit of March 31 in transit 22,186 37,786 Deduct: Outstanding cheques: #79 $ 1,314 #84 1,994 3,308 Adjusted bank balance $ 34,478 Adjusted book balance $ 34,478

The Cash account in the General Ledger appeared as follows on April 30:

Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 34,478.00 April 30 CR11 35,873.00 70,351.00 30 CD14 45,803.00 24,548.00

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 $ 14,960.00 13 898.00 18 14,368.00 23 1,001.00 27 1,994.00 30 2,652.00 Total April Cash Receipts $ 35,873.00

Cheques Written No. 91 $ 1,264 92 5,510 93 2,590 94 3,636 95 3,052 96 1,907 97 8,918 98 3,052 99 9,038 100 6,836 Total April Cash Disbursements $ 45,803

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 April 30, 2020

Bank of Montreal Cheques/Charges Deposits/Credits Balance 15,600 #93 04/02 2,509 04/03 22,186 35,277 #92 04/07 5,510 04/07 14,960 44,727 #84 04/13 1,994 04/13 898 43,631 NSF 04/18 6,924 04/18 14,368 51,075 #95 04/23 3,052 04/23 1,001 49,024 #99 04/27 9,038 04/27 1,994 41,980 #96 04/30 1,907 04/30 2,652 42,725 #97 04/30 8,918 INT 46 33,853 #94 04/30 3,636 30,217 PMT 04/30 9,924 20,293 INT 04/30 35 20,258 SC 04/30 55 20,203 NSF = Not Sufficient

Funds SC = Service Charge PMT = Principal Payment INT = Interest

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.

Required:

a. Prepare a bank reconciliation at April 30.

b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.