The Cash in Bank account balance on April 30 was $13,991. In reviewing checks returned by the bank, the accountant discovered that check No. 811 written for $541 for delivery expense, was recorded in the cash disbursements journal as $451. The NSF check for $500 was that of customer R. Koppa, deposited in April. Interest for April added to the account by the bank was $95.

Bank Reconciliation The bank reconciliation made by Adam Company, a sole proprietorship, on March 31 showed: Deposit in transit of $1,300 Outstanding checks no.797 $550 $690 The reconciled cash balance on March 31 was $12,020 no 804 The following bank statement is available for April 30. Bank Statement TO Adam Company April 30 Fairbanks, AK FAIRBANKS NATIONAL BANK Date Deposits No. Date Charges Date Balance Apr. 1 $1,300 804 Apr. 2 $690 Mar. 31 $11,960 3 1,680 807 3 730 Apr. 1 13,260 7 1,250 808 7 1,240 2 12,570 13 1,020 809 7 838 3 13,520 18 840 810 16 1,040 7 12,692 23 990 811 541 13 13,171 27 1,340 813 640 16 12,131 30 1,160 814 23 600 18 12,471 30 95IN NSF 18 500 23 12,861 SC 30 40 27 13,561 30 14,776 Item codes EC: Error Correction DM: Debit Memo CM: Credit Memo SC: Service Charge OD: Overdraft RT: Returned Item IN: Interest Earned NSF: Non-sufficient Funds 13 27 A list of deposits made and checks written during April is shown below: A list of deposits made and checks written during April is shown below: Deposits Made Checks Written Apr. 2 $1,680 No. 807 $730 6 1,250 808 1,240 10 1,020 809 838 17 840 810 1,040 22 990 811 451 24 1,340 812 948 29 1,160 813 640 30 1,425 814 600 $9,705 815 372 816 875 $7,734 The Cash in Bank account balance on April 30 was $13,991. In reviewing checks returned by the bank, the accountant disa Required a. Prepare a bank reconciliation for Adam Company at April 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balan Bank reconciliation Journal entries ADAM COMPANY Bank Reconciliation April 30, 2018 0 $ a 0 0 Oolo Less: NSF Check R. Koppa 0 Less: Outstanding checks (list in numerical order) Check no. Amount 0 0 0 0 0 0 Error in recording Check No. 811 0 0 0 0 0 0 0 e 5 Check Bank reconciliation Jafy nal entries General Journal Description Debit Credit Date April 30 $ 0 $ 0 0 0 To record interest earned on bank account for April. 30 e 0 0 0 0 To reclassify NSF check as an accounts receivable. 30 0 0 0 0 To record bank service charge. 30 . 0 0 0 0 To correct error in recording check 811. Check