The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, current year, bank statement and the April ledger accounts for cash showed the following (summarized): Bank Statement Balance, March 31, current year Deposits during April Notes collected for company (including $90 interest) Cheques cleared during April NSF cheque-A. B. Wright Bank service charges Balance, April 30, current year Mar. 31 Balance Apr. Deposits Apr. 30 Balance Company's Books Ending balance per bank statement Additions: Note receivable collected Interest collected Cash in Bank Required: 1. Prepare a detailed bank reconciliation for April. Deductions: NSF-A.B. Wright Bank charges 25,500 44,500 Apr. Cheques written Ending correct cash balance Cash on Hand 300 A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $6,100 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30. $ Cheques Deposits Balance $35,000 73,100 74,480 27,980 27,800 27,710 27,710 0 0 $46,500 180 90 HOPKINS COMPANY Bank Reconciliation, April 30, Current Year Bank Statement Ending balance per bank statement Additions: Deposit in transit $ 38,100 1,380 Deductions: Outstanding cheques 0 O Ending correct cash balance 43,100 $ 0 0
The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, current year, bank statement and the April ledger accounts for cash showed the following (summarized): Bank Statement Balance, March 31, current year Deposits during April Notes collected for company (including $90 interest) Cheques cleared during April NSF cheque-A. B. Wright Bank service charges Balance, April 30, current year Mar. 31 Balance Apr. Deposits Apr. 30 Balance Company's Books Ending balance per bank statement Additions: Note receivable collected Interest collected Cash in Bank Required: 1. Prepare a detailed bank reconciliation for April. Deductions: NSF-A.B. Wright Bank charges 25,500 44,500 Apr. Cheques written Ending correct cash balance Cash on Hand 300 A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $6,100 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30. $ Cheques Deposits Balance $35,000 73,100 74,480 27,980 27,800 27,710 27,710 0 0 $46,500 180 90 HOPKINS COMPANY Bank Reconciliation, April 30, Current Year Bank Statement Ending balance per bank statement Additions: Deposit in transit $ 38,100 1,380 Deductions: Outstanding cheques 0 O Ending correct cash balance 43,100 $ 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have
time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.
The April 30, current year, bank statement and the April ledger accounts for cash showed the following (summarized):
Bank Statement
Balance, March 31, current year
Deposits during April
Notes collected for company (including $90 interest)
Cheques cleared during April
NSF cheque-A. B. Wright
Bank service charges
Balance, April 30, current year
Mar. 31 Balance
Apr. Deposits
Apr 30 Balance
Company's Books
Ending balance per bank statement
Additions:
Note receivable collected
Interest collected
Cash in Bank
Required:
1. Prepare a detailed bank reconciliation for April.
Deductions:
NSF-A.B. Wright
Bank charges
25,500
44,500 Apr. Cheques written
Ending correct cash balance
Cash on Hand
300
A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $6,100
are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30.
Cheques Deposits Balance
$35,000
73,100
74,480
$
$46,500
180
90
0
0
HOPKINS COMPANY
Bank Reconciliation, April 30, Current Year
Bank Statement
Ending balance per bank statement
Additions:
Deposit in transit
$ 38,100
1,380
Deductions:
Outstanding cheques
0
0 Ending correct cash balance
27,980
27,800
27,710
27,710
43,100
$
0
0
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