The bank reconciliation prepared by Gemma Tours on March 31, 2014, appeared as follows:

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

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

The following bank statement is available for April:

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.
Required
a. Prepare bank reconciliation at April 30.
b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.

Transcribed Image Text:

Gemma Tours Bank Reconcillation March 31, 2014 $14,800 21,050 35,830 Bank statement balance Add Book balance 32,710 Deposit of March 31 in transit Deduct Outstanding cheques #79 #84 $1,250 1,890 3,140 32,710 Adjusted bank balance Adjusted book balance $32,710 Cash Acet. No. 101 Balance Date Explanation PR Debit Credit 2014 32,710.00 66,759.00 43,6430023,116.00 March 3Balance CR1 CD14 Api 30 4,049.00 30 Deposits Made Cheques Written April 7.s $14,200 850 3,00 945 1,890 2,564 No. 91 S 1,200 5,230 2,590 3,452 2,900 ,811 8,470 2,900 8,590 6,500 Total April Cash Disbursements$43,643 n 13. 18 23 27 30 93 4 95 96 97 98 Total April Cash Receipts. 34.049 100 Bank Statement April 30, 2014 Bank of Montreal To: Gemma Tours Cheques/Charges Deposits/Credits Balance #93 #92 #84 NSF #95 #99 #96 #97 #94 PMT INT 04/02 04/07 04/13 04/18 04/23 04/27 04/30 04/30 04/30 04/30 04/30 04/30 2,509 5,230 1,890 6,540 2,900 8,590 1,811 8,470 3,452 9,420 35 04/03 04/07 04/13 04/18 04/23 04/27 04/30 04/30 21,050 14,200 850 13,600 945 1,890 2,564 46 14,800 33,341 42,311 41,271 48,331 46,376 39,676 40,429 32,005 28,553 19,133 19,098 19,043 PMT Principal Payment INT Interest NSF Not Sufficient Funds SC Service Charge