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

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial…