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Chapter $7$ Assignment

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Item $3$

Problem $7-6$A Preparing a bank reconciliation and recording adjustments LO$6$

The bank reconciliation prepared by Gemma Tours on March $31,2023,$ appeared as follows:

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GEMMA TOURS$$Bank Reconciliation$$March $31,2023$Bank statement balance$$$$15,400$Book balance$$34,036$Add:$$Deposit of March $31$ in transit$21,90237,302$Deduct:$$Outstanding cheques:$$#$79$$$1,298$#$841,9683,266$Adjusted bank balance$$$$34,036$Adjusted book balance$$34,036$

The Cash account in the General Ledger appeared as follows on April $30$:

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CashAcct. No$.101$DateExplanationPRDebit$$CreditBalance$2023$March$31$Balance$34,036\mathrm{.}00$April$30$CR$1135,417\mathrm{.}0069,453\mathrm{.}0030$CD$1445,263\mathrm{.}0024,190\mathrm{.}00$

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A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

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Deposits Made$$April$7$$$14,770\mathrm{.}0013886\mathrm{.}001814,176\mathrm{.}0023987\mathrm{.}00271,968\mathrm{.}00302,630\mathrm{.}00$Total April Cash Receipts$$35,417\mathrm{.}00$

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Cheques Written$$No$\mathrm{.}91$$$1,248925,440932,590943,590953,014961,883978,806983,014998,9261006,752$Total April Cash Disbursements$$45,263$

The following bank statement is available for April: $($Note: The bank deposits interest into the bank account at the end of every month.$)$

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Bank Statement$$To: Gemma Tours$$April $30,2023$

Bank of Montreal$$Cheques$/$Charges$$Deposits$/$Credits$$Balance$15,400$#$9304/022,50904/0321,90234,793$#$9204/075,44004/0714,77044,123$#$8404/131,96804/1388643,041$NSF$04/186,82804/1814,17650,389$#$9504/233,01404/2398748,362$#$9904/278,92604/271,96841,404$#$9604/301,88304/302,63042,151$#$9704/308,806$INT$4633,391$#$9404/303,59029,801$PMT$04/309,79820,003$INT$04/303519,968$SC$04/305519,913$NSF $=$ Not Sufficient

FundsSC $=$ Service Charge$$PMT $=$ Principal Payment$$INT $=$ Interest$$

In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #$93,$ for delivery expense, was recorded in the Cash Disbursements Journal incorrectly as $$2,590.$ The NSF cheque was that of customer Laura Clark, deposited in April.