The bank reconciliation prepared by Gemma Tours on March 31, 2017, appeared as follows:

Gemma Tours
Bank Reconciliation
March 31, 2017
Bank statement balance		$15,500	Book balance	$34,257
Add:
Deposit of March 31 in transit		22,044
		$37,544
Deduct:
Outstanding cheques:
#79	$1,306
#84	1,981	3,287
Adjusted bank balance		$34,257	Adjusted book balance	$34,257

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

Cash					Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
2017
March 31	Balance				34,257.00
April 30		CR11	35,645.00		69,902.00
30		CD14		45,533.00	24,369.00

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	$14,865.00
13	892.00
18	14,272.00
23	994.00
27	1,981.00
30	2,641.00
Total April Cash Receipts	$35,645.00

Cheques Written
No. 91	$ 1,256
92	5,475
93	2,590
94	3,613
95	3,033
96	1,895
97	8,862
98	3,033
99	8,982
100	6,794
Total April Cash Disbursements	$45,533

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, 2017 Bank of Montreal
Cheques/Charges			Deposits/Credits		Balance
					15,500
#93	04/02	2,509	04/03	22,044	35,035
#92	04/07	5,475	04/07	14,865	44,425
#84	04/13	1,981	04/13	892	43,336
NSF	04/18	6,876	04/18	14,272	50,732
#95	04/23	3,033	04/23	994	48,693
#99	04/27	8,982	04/27	1,981	41,692
#96	04/30	1,895	04/30	2,641	42,438
#97	04/30	8,862	INT	46	33,622
#94	04/30	3,613			30,009
PMT	04/30	9,861			20,148
INT	04/30	35			20,113
SC	04/30	55			20,058

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.

GEMMA TOURS
Bank Reconciliation
April 30, 2017
Bank Statement			Company's Books
Bank statement balance			Book balance
Add:			Add:
					0
		0			0
Deduct:			Deduct:
Outstanding cheques:
		0			0
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.

Journal entry worksheet

Record interest earned.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30

Journal entry worksheet

Record to account for error in Cheque #93.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30

Journal entry worksheet

Record to reinstate customer account.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30

Journal entry worksheet

Record April loan payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30

Journal entry worksheet

Record April interest expense.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30

Journal entry worksheet

Record April bank charges.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Apr 30