The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, I

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, 2014, bank statement and the April ledger accounts for cash showed the following (summarized):

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. No deposits in transit were carried over from March, but a deposit was in transit at the end of April.
Required:
1. Prepare a detailed bank reconciliation for April.
2. Give any required journal entries as a result of the reconciliation. Why are they necessary?
3. What was the balance in the cash account in the ledger on May 1, 2014?
4. What total amount of cash should be reported on the balance sheet at the end ofApril?

Transcribed Image Text:

BANK STATEMENT Checks Deposits Balance Balance, April 1, 2014 Deposits during April nterest collected Checks cleared during Ap NSF check-A. B. Wright Bank service charges Balance, April 30, 2014 $31,000 68,100 69,280 26,280 26,120 26,070 26,070 S37,100 1,180 $43,000 160 50 Cash (A) Apr 1 Balance Apr. Deposits 23,500 Apr. Checks written 41,100 41,500