Preparing a Bank Reconciliation and Related Journal Entries The bookkeeper at Wood Company has not reconciled the

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Preparing a Bank Reconciliation and Related Journal Entries
The bookkeeper at Wood Company has not reconciled the bank statement with the Cash account, saying, €œI don€™t have time.€ You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, 2011, bank statement and the April ledger accounts for cash showed the following (summarized):

BANK STATEMENT Checks Deposits Balance $31,000 67,100 68,280 Balance, April 1, 2011 Deposits during April Interest colle

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 $4,100. 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, 2011?
4. What total amount of cash should be reported on the balance sheet at the end ofApril?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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