The following information is for Yamada, Ltd. in April:
1. Cash balance on April 30 in the ledger was $8,645, and cash balance on April 30’s bank statement was $10,750.
2. Deposit in transit for the amount of $1,180 from February 28 was recorded in the bank statement on March 1. Deposit in transit for the amount of $720 from April 30 was not recorded in the April bank statement.
3. Cheque 683 for the amount of $1,400 was outstanding on March 31 and was still outstanding on April 30.
4. Cheque 705 for the amount of $1,020 was outstanding on April 30.
5. EFT collection of $620 from a tenant for his rent payment was shown on April 2 in the bank statement.
6. A cheque for cash sales for the amount of $630 was mistakenly recorded as $360 in the book.
7. An NSF cheque for the amount of $425 together with an NSF fee of $15 were included in the bank statement.
8. Interest and bank service charges for April were $30 and $15 respectively.
1. Prepare Yamada’s bank reconciliation on April 30. What is the reconciled book balance?
2. Record the entries to update the Cash account balance. Include an explanation for each entry.
3. If the entries were not recorded in (2), what is the impact on each of the assets, liabilities, and shareholders’ equity accounts?

  • CreatedJuly 08, 2015
  • Files Included
Post your question