The Mesa Ho Ho Kam’s (affectionately known as the Mesa Ho’s) are a community service organization that supports a variety of charities throughout the Valley of the Sun. The following information is available to reconcile the Mesa Ho’s book balance of cash with its bank statement as of April 30 of the current year.

1. After all posting is complete on April 30, the Ho’s book balance of cash is $1,404.58 debit balance, but its bank balance is $2,050.00
2. Checks #124 for $150 and #126 for $200 are outstanding.
3. The April 30 a deposit of $145 was placed in the night depository after banking hours on that date, and does not appear on the bank statement.
4. A credit memorandum enclosed with the bank statement indicates that the bank collected a $500 (minus a $15 collection fee) note and $8.42 of related interest on the Ho’s behalf. This transaction was not recorded by the Mesa Ho’s prior to receiving the bank statement.
5. Debits on the Ho’s bank statement that are not yet recorded include a $23 charge for check printing and an NSF check for $20 plus a $10 processing fee. The NSF check is dated April 16 and was included in the book balance.

In good order and form, prepare the bank reconciliation for the Mesa Ho Ho Kam’s for the month of April.

In proper order and form, record the necessary adjusting entries for the Mesa Ho Ho Kam’s.

Define the following terms.

Bank Reconciliation

Cash Equivalents

Liquidity

Petty Cash

Name and Identify one (1) item that would be deducted from the Bank Statement Balance during the bank reconciliation process.

Answer rating: 100% (QA)

Bank Reconciliation for Mesa Ho Ho Kams as of April 30 Bank Statement Balance 205000 Add Outstanding checks 15000 20000 35000 Adjusted Bank Balance 24... View the full answer