CP5-2 (Algo) Preparing a Bank Reconciliation and Journal Entries and Reporting Cash (LO 5-4, LO 5-5)...

 

Transcribed Image Text:

CP5-2 (Algo) Preparing a Bank Reconciliation and Journal Entries and Reporting Cash (LO 5-4, LO 5-5) [The following information applies to the questions displayed below.] The April 30 bank statement for KMaxx Company and the April ledger account for cash are summarized here: BANK STATEMENT Checka Deposita Other Balance Balance, April 1 Apr1l 5 April 9 April 12 April 19 April 22 April 27 April 29 April 30 $ 6,700 5,880 9,080 8,830 8,080 6,580 6,280 6,130 6,100 #101 $ 820 $ 3,200 #102 250 #103 750 #104 1,500 S 300 EFT paynent NSF check 150 Service charge 30 Cash (A) Debit Credit April 1 April 8 April 28 Balance 6,700 3,200 April 2 April 10 April 15 April 20 April 29 820 #101 102 B00 250 750 1,600 #103 104 450 #105 April 30 Balance 6,830 No outstanding checks and no deposits in transit were noted in March. However, there are deposits 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 correctly written for $1,600. The NSF check had been received from a customer. 1. Prepare a bank reconciliation for April. TIP: Put a check mark beside each item that appears on both the bank statement and what's already been recorded in the accounting records (shown in the T-account). Items left unchecked will be used in the bank reconciliation. KMAXX COMPANY Bank Reconciliation At April 30 Bank Statement Company's Books Ending Balance per Bank Statement Ending Balance per Cash Account Additions: Additions: Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance CP5-2 (Algo) Preparing a Bank Reconciliation and Journal Entries and Reporting Cash (LO 5-4, LO 5-5) [The following information applies to the questions displayed below.] The April 30 bank statement for KMaxx Company and the April ledger account for cash are summarized here: BANK STATEMENT Checka Deposita Other Balance Balance, April 1 Apr1l 5 April 9 April 12 April 19 April 22 April 27 April 29 April 30 $ 6,700 5,880 9,080 8,830 8,080 6,580 6,280 6,130 6,100 #101 $ 820 $ 3,200 #102 250 #103 750 #104 1,500 S 300 EFT paynent NSF check 150 Service charge 30 Cash (A) Debit Credit April 1 April 8 April 28 Balance 6,700 3,200 April 2 April 10 April 15 April 20 April 29 820 #101 102 B00 250 750 1,600 #103 104 450 #105 April 30 Balance 6,830 No outstanding checks and no deposits in transit were noted in March. However, there are deposits 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 correctly written for $1,600. The NSF check had been received from a customer. 1. Prepare a bank reconciliation for April. TIP: Put a check mark beside each item that appears on both the bank statement and what's already been recorded in the accounting records (shown in the T-account). Items left unchecked will be used in the bank reconciliation. KMAXX COMPANY Bank Reconciliation At April 30 Bank Statement Company's Books Ending Balance per Bank Statement Ending Balance per Cash Account Additions: Additions: Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance

Answer rating: 100% (QA)

KMAXX COMPANY Bank Reconcilation At April 30 Bank Statement Companys Books Ending Balanc... View the full answer