The following information is from the books of Towl Ball Company for the month of April.

Cash Receipts Journal 

Date                            Cash Received

April 2 ……………..........      $ 2,500

5……………....................       2,000

9……………....................      1,800

11……………....................  1,500

14……………....................   2,250

17……………....................   1,000

23……………....................   3,000

30……………....................   2,500

30……………....................   1,250

The balance in Towl Ball’s cash account on April 30 is $ 16,232. Towl Ball received the following bank statement from Independence Day Bank for the month of April:

Prepare the bank reconciliation for Towl Ball by determining the correct balances for both book and bank. Record all journal entries required to correct Towl Ball’s cash balance. Assume the correct amount of check # 3451 is $ 1,200.

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Cash Disbursements Joumal Check Number Cash Payment Purpose 3449 3450 3451 3452 3453 3454 3455 3456 $4,000 Payroll 2850 Suppliers 1100 uppliers 56 Postage 27 Supplies Utilities 1450 5400 Payroll 30 Supplies Independence Day Bank Checking Account Account Activity Summary Beginning balance Deposits and Other Additions Deposits April 2 $13,345 $2,500 2,000 1,800 1,500 2.250 1,000 3.000 28 14 17 23 Interest eamed this statement period 14,078 Checks Written and Other Subtractions Checks 3449 3450 3451 3452 3454 3456 4,000 2,850 1,200 56 1,450 30 Monthly Service Charge 35 9,621 Ending Balance on April 30 $17802