The April 30 bank statement for KMaxx Company and the April ledger account for cash are summarized here:
No outstanding checks and no deposits in transit were noted in March. However, there are de-posits in transit and checks outstanding at the end of April. The EFT involved an automatic monthly payment to one of KMaxx’s creditors. Check # 104 was written for $ 1,100. The NSF check had been received from a customer.
1. Prepare a bank reconciliation for April
2. Give any journal entries that should be made as a result of the bank reconciliation.
3. What should the balance in the Cash account be after recording the journal entries in requirement 2?
4. If the company also has $ 1,000 of petty cash on hand (recorded in a separate account), what total amount should the company report as Cash and Cash Equivalents on the April 30 balance sheet?

  • CreatedNovember 02, 2015
  • Files Included
Post your question