The April 30 bank statement for KMaxx Company and the April ledger account for cash are summarized here:

No outstanding checks and no deposits in transit were noted in March. However, there are de-posits in transit and checks outstanding at the end of April. The EFT involved an automatic monthly payment to one of KMaxx's creditors. Check # 104 was written for $ 1,100. The NSF check had been received from a customer.

Required:
1. Prepare a bank reconciliation for April
2. Give any journal entries that should be made as a result of the bank reconciliation.
3. What should the balance in the Cash account be after recording the journal entries in requirement 2?
4. If the company also has $ 1,000 of petty cash on hand (recorded in a separate account), what total amount should the company report as Cash and Cash Equivalents on the April 30 balance sheet?

Transcribed Image Text:

BANK STATEMENT Checks Deposits Other Balance, April 1 April 5 April 9 April 12 April 19 April 22 April 27 April 29 April 30 Balance $6.000 5.300 7.800 7,600 7,100 6,100 5.900 5.800 5.775 #101 $700 $2.500 #102 200 #103 500 #104 1,000 EFT payment $200 NSF check 100 Service charge 25 Cash (A) Ap Balance April 8 April 28 6,000 2500 700 500 200 500 1,100 300 April 2 April 10 April 15 April 20 April 29 #101 #102 #103 #104 #105 April 30 Balance