The April 30, 2014, bank statement for KMaxx Company and the April ledger account for cash are summarized here:

No outstanding checks and no deposits in transit were noted in March. However, there are deposits in transit and cheques outstanding at the end of April. The electronic funds transfer (EFT) involved an automatic monthly payment to one of KMaxx's creditors. Cheque #104 was written for $1,100. The NSF cheque had been received from a customer.
Required
1. Prepare a bank reconciliation for April.
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.
2. Give any journal entries that should be made as a result of the bank reconciliation.
Remember to make entries only for items that affect the company's books, not the bank.
3. What should the balance in the Cash account be after recording the journal entries in requirement 2?
4. If the company also has $1,000 of cash on hand (recorded in a separate account), what total amount should the company report as Cash and Cash Equivalents on the April 30 balance sheet?

Transcribed Image Text:

Other Date Cheques Balance Deposits Balance, April 1, 2014 April 5 April 9 April 12 April 19 April 22 $6,000 5,300 $ 700 #101 $2,500 7,800 7,600 7,100 "102 200 #103 500 #104 1,000 6,100 April 27 April 29 EFT Payment NSF cheque Service charge $200 5,900 100 5,800 April 30 25 5,775 Cash (A) April 1 April 8 April 28 Balance 6,000 700 April 2 200 April 10 500 April 15 1,100 April 20 300 2,500 *101 500 #102 #103 #104 *105 April 29 April 30 Balance 6,200