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The bank reconciliation prepared on March 31, 2020, appeared as follows: Bank Reconciliation March 31, 2020 Bank statement balance $ 15,400 Book balance $ 34,036

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

Bank Reconciliation
March 31, 2020
Bank statement balance $ 15,400 Book balance $ 34,036
Add:
Deposit of March 31 in transit 21,902
37,302
Deduct:
Outstanding cheques:
#79 $ 1,298
#84 1,968 3,266
Adjusted bank balance $ 34,036 Adjusted book balance $ 34,036

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 34,036.00
April 30 CR11 35,417.00 69,453.00
30 CD14 45,263.00 24,190.00

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 $ 14,770.00
13 886.00
18 14,176.00
23 987.00
27 1,968.00
30 2,630.00
Total April Cash Receipts $ 35,417.00
Cheques Written
No. 91 $ 1,248
92 5,440
93 2,590
94 3,590
95 3,014
96 1,883
97 8,806
98 3,014
99 8,926
100 6,752
Total April Cash Disbursements $ 45,263

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: April 30, 2020
Cheques/Charges Deposits/Credits Balance
15,400
#93 04/02 2,509 04/03 21,902 34,793
#92 04/07 5,440 04/07 14,770 44,123
#84 04/13 1,968 04/13 886 43,041
NSF 04/18 6,828 04/18 14,176 50,389
#95 04/23 3,014 04/23 987 48,362
#99 04/27 8,926 04/27 1,968 41,404
#96 04/30 1,883 04/30 2,630 42,151
#97 04/30 8,806 INT 46 33,391
#94 04/30 3,590 29,801
PMT 04/30 9,798 20,003
INT 04/30 35 19,968
SC 04/30 55 19,913
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.

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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 Record interest earned. Note: Enter debits before credits. General Journal Credit Date Apr 30 Debit 46 Cash Interest revenue 46 Record entry Clear entry View general journal 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 Record to account for error in Cheque #93. Note: Enter debits before credits. Debit Credit Date Apr 30 General Journal Bank service charges expense Cash 81 81 Record entry Clear entry View general journal 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 Record April loan payment. Note: Enter debits before credits. General Journal Debit Credit Date Apr 30 Cash 9,798 Loan payable or Notes payable 9,798 Record entry Clear entry View general journal 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 Record April interest expense. Note: Enter debits before credits. Date Debit Credit Apr 30 General Journal Cash Interest expense 35 35 Record entry Clear entry View general journal

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