The bookkeeper at Hopkins Company has not reconciled the bank statement with the Cash account, saying. "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.

The April 30. 2006. bank statement and the April ledger accounts for cash showed the following

(summarized):

A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $2,200. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.
Required: 1. Prepare a detailed bank reconciliation for April. 2. Give any required journal entries as a result of the reconciliation. Why are they necessary? 3. What were the balances in the cash accounts in the ledger on May 1. 2006? 4. What total amount of cash should be reported on the balance sheet at the end of April?

Transcribed Image Text:

BANK STATEMENT Checks Deposits Balance Balance. April 1, 2006 Deposits during April $25,850 $36,000 61.850 Interest collected 1.070 62.920 Checks cleared during April $44.200 18.720 NSF check-A. B. Wright 140 18,580 Bank service charges Balance, April 30, 2006 50 18.530 18.530 Cash (A) Apr. 1 Balance 23,250 Apr. Checks written 43,800 Apr. Deposits 42,000 Apr. 30 Balance Cash on hand (A) 100