Assignment 3 : Financial Acct 2
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Copyofcf_Unit3_P6-6.xlsxP6-6
| P6-6 Preparing a Bank Reconciliation and Related Journal Entries LO6-5 | ||||||
| The bookkeeper at Jefferson 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, 2014, bank statement and the April ledger accounts for cash showed the following (summarized): | ||||||
| BANK STATEMENT | ||||||
| Checks | Deposits | Balance | ||||
| Balance, April 1, 2014 | $ 31,000 | |||||
| Deposits during April | $ 37,100 | 68,100 | ||||
| Interest collected | 1,180 | 69,280 | ||||
| Checks cleared during April | $ 43,000 | 26,280 | ||||
| NSF check—A. B. Wright | 160 | 26,120 | ||||
| Bank service charges | 50 | 26,070 | ||||
| Balance, April 30, 2014 | 26,070 | |||||
| Cash | ||||||
| Apr. 1 Balance | 23,500 | 41,100 | Apr. Checks written | |||
| Apr. Deposits | 41,500 | |||||
| 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 $5,600. 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. | |||||
| Possible input areas are shaded. | ||||||
| JEFFERSON COMPANY | ||||||
| Bank Reconciliation | ||||||
| April 30, 2014 | ||||||
| Company's Books | Bank Statement | |||||
| Ending balance per cash account | Ending balance per bank statement | |||||
| Additions: | Additions: | |||||
| - | - | |||||
| - | - | |||||
| Deductions: | Deductions: | |||||
| - | - | |||||
| Correct cash balance | Correct cash balance | |||||
| Required: | ||||||
| 2 | Prepare the journal entries that the company should make as a result of the bank reconciliation. | |||||
| (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | ||||||
| Transaction | General Journal | Debit | Credit | |||
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| Required: | ||||||
| 3 | What was the balance in the cash account in the ledger on May 1, 2014? | |||||
| Cash balance | ||||||
| 4 | What total amount of cash should be reported on the balance sheet at the end of April? | |||||
| Total amount of cash |
P6-6 Check Figures
| P6-6 Preparing a Bank Reconciliation and Related Journal Entries LO6-5 | ||||||
| The bookkeeper at Jefferson 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, 2014, bank statement and the April ledger accounts for cash showed the following (summarized): | ||||||
| BANK STATEMENT | ||||||
| Checks | Deposits | Balance | ||||
| Balance, April 1, 2014 | $ 31,000 | |||||
| Deposits during April | $ 37,100 | 68,100 | ||||
| Interest collected | 1,180 | 69,280 | ||||
| Checks cleared during April | $ 43,000 | 26,280 | ||||
| NSF check—A. B. Wright | 160 | 26,120 | ||||
| Bank service charges | 50 | 26,070 | ||||
| Balance, April 30, 2014 | 26,070 | |||||
| Cash | ||||||
| Apr. 1 Balance | 23,500 | 41,100 | Apr. Checks written | |||
| Apr. Deposits | 41,500 | |||||
| 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 $5,600. 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. | |||||
| Possible input areas are shaded. | ||||||
| JEFFERSON COMPANY | ||||||
| Bank Reconciliation | ||||||
| April 30, 2014 | ||||||
| Company's Books | Bank Statement | |||||
| Ending balance per cash account | Ending balance per bank statement | |||||
| Additions: | Additions: | |||||
| - 0 | - 0 | |||||
| - 0 | - 0 | |||||
| Deductions: | Deductions: | |||||
| - 0 | - 0 | |||||
| Correct cash balance | Correct cash balance | $24,870 | ||||
| Required: | ||||||
| 2 | Prepare the journal entries that the company should make as a result of the bank reconciliation. | |||||
| (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | ||||||
| Transaction | General Journal | Debit | Credit | |||
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| Required: | ||||||
| 3 | What was the balance in the cash account in the ledger on May 1, 2014? | |||||
| Cash balance | ||||||
| 4 | What total amount of cash should be reported on the balance sheet at the end of April? | |||||
| Total amount of cash |
Sheet2
| List1 | List 2 | ||
| Bank charges | No journal entry required | ||
| Deposits in transit | Accounts receivable (A. B. Wright) | ||
| Interest collected | Administrative expense | ||
| NSF—A. B. Wright | Allowance for doubtful accounts | ||
| Outstanding checks | Bad debt expense | ||
| Bank service charge expense | |||
| Cash | |||
| Cost of goods sold | |||
| Income tax expense | |||
| Interest revenue | |||
| Sales discount | |||
| Sales returns and allowances | |||
| Sales revenue | |||
| Selling expense |
