Crabapple Catering has just received its April bank statement from Example Bank. You gather the following information to prepare the April 30, 2015, bank reconciliation.
APRIL BANK STATEMENT:

CASH ACCOUNT TRANSACTIONS FOR APRIL:
GL ACCOUNT: 1080 Bank Account
For the period of April 01/15 to April 30/15

BANK RECONCILIATION FOR PRECEDING MONTH (DATED MARCH 31):

Instructions
1. Prepare a bank reconciliation as at April 30, 2015. Assume that any errors in recording deposits or cheques were made by the bank. Deposits are made on Friday evenings.
2. Briefly explain how any errors were reflected in the bank reconciliation and how they should be corrected.
3. Journalize any necessary entries.
4. What should be the balance of the Cash Account as at April 30, 2015?

Transcribed Image Text:

EXAMPLE BANK Statement of Account 2197-0459036 DESCRIPTION Account Type Statement From To Business April 01/15 April 30/15 DATE WITHDRAWALS DEPOSITS BALANCE BALANCE FORWARD No. 379 No. 383 No. 384 Deposit No. 378 Deposit No. 376 No. 381 No. 380 No. 387 NSF Deposit No. 385 No. 389 No. 390 Deposit No. 364 Service Charge 1 MAR 31 APR 02 APR 02 APR 02 APR 02 APR 04 APR 09 APR 10 APR 10 APR 16 APR 16 APR 16 APR 16 APR 19 APR 19 APR 19 APR 23 APR 27 APR 30 10,128.95 9,696.93 9,607.53 8,647.53 9,915.36 9,870.97 10,258.25 10,193.51 10,159.90 9,288.53 8,728.83 7,910.25 8,836.75 8,795.99 2,034.49 1,977.79 2,837.82 2,180.98 2,162.21 430.02 89.40 960.00 1,267.83 44.39 387.28 64.74 33.71 871.27 561.70 816.58 926.50 40.76 6,761.50 56.70 660.03 456.86 18.75 11,206.38 3,241.64 DATE REFERENCE | DEBIT | CREDIT | BALANCE Dr. (Cr) Opening Balance April 8 April 13 April 16 8 38728 926.50 April 20 27 660.03 746.35 2,720.16 4,125.82 Cash balance according to bank statement Add deposit of March 31, not recorded by bank $10,126.95 1,267.83 11,39.78 Deduct outstanding cheques: No. 364 371 376 $A56.86 75.78 64.70 597.38 $10,797.40 Adjusted balance Cash balance according to company's records. Deduct: Service charges... Adjusted balance $10,816.15 18.75 $10,797.40