FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question

Dhapa

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, Current year, bank statement and the April ledger account for cash showed the following (summarized):
BANK STATEMENT
Checks
Deposits
Balance, April 1, Current Year
Balance
$ 31,000
Deposits during April
$
68,100
37,100
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, Current Year
26,070
Cash (A)
Debit
Credit
April 1 Balance
April Deposits
23,500 April Checks written
41,500
41,100
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 (including $3,700 written before and $1,900 written during April). No deposits in
transit were carried over from March, but a deposit was in transit at the end of April.
2. Prepare the journal entries that the company should make as a result of the bank reconciliation.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
expand button
Transcribed Image Text: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, Current year, bank statement and the April ledger account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance, April 1, Current Year Balance $ 31,000 Deposits during April $ 68,100 37,100 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, Current Year 26,070 Cash (A) Debit Credit April 1 Balance April Deposits 23,500 April Checks written 41,500 41,100 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 (including $3,700 written before and $1,900 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April. 2. Prepare the journal entries that the company should make as a result of the bank reconciliation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education