You are a college student and have just been hired to work part-time in the accounting department of Candy?s Cleaning Services. The person you are replacing had difficulty preparing the bank reconciliation for April 30, which is shown below.

In comparing the bank reconciliation to the Cash account in the general ledger, you notice a problem. You investigate further and come up with some additional information as follows:

a. The Cash account in the general ledger showed the following:

b. The error in cheque #93, for Utilities Expense, resulted from the bank incorrectly debiting our account for $99; the correct amount entered in the accounting records is $199.

c. The bank statement showed interest expense of $47; there was no other interest.

d. The bank debited our account for cheque #879 written by Candy?s Hair Salon.

e. Cheque #86 for $14,000 listed as outstanding on last month?s bank reconciliation was not returned with the April 30 bank statement.

Required

1. Prepare a corrected bank reconciliation for April 30, 2020.

2. Record the journal entries resulting from the corrected bank reconciliation.

Transcribed Image Text:

Candy's Cleaning Services Bank Reconciliation April 30, 2020 Book balance. Add: Interest . Error Chq #93. $28,934 Bank balance $33,452 $47 Deduct: NSF, customer Bonne. $ 412 146 99 $29,080 Outstanding cheques: # 879. # 100. Adjusted bank balance. Deduct: Service Charge. Adjusted book balance 2,600 40 4,412 $29,040 1,400 $29,040 Acct. No. 101 Cash Date PR Credit Balance Explanation Debit 2020 March Balance 28,934 31 April 30 CR16 56,000 84,934 30 63,883 21,051 CD21