Unit 3 Assignment 2 P6-6

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P6-6

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