The bank reconciliation prepared by Gemma Tours on March 31,2017, appeared as follows:
Gemma Tours Bank Reconciliation March 31, 2017 Bank statementbalance $15,500 Book balance $34,257 Add: Deposit of March 31 in transit 22,044 $37,544 Deduct: Outstanding cheques: #79 $1,306 #84 1,981 3,287 Adjusted bankbalance $34,257
Adjusted bookbalance $34,257
The Cash account in the General Ledger appeared as follows on April30:
Cash Acct. No.101 Date Explanation PR Debit Credit Balance 2017 March 31 Balance 34,257.00 April 30 CR11 35,645.00 69,902.00 30 CD14 45,533.00 24,369.00
A list of deposits made and cheques written during April, takenfrom the Cash Receipts Journal and Cash Disbursements Journal, isshown below:
Deposits Made April 7 $14,865.00 13 892.00 18 14,272.00 23 994.00 27 1,981.00 30 2,641.00 Total April CashReceipts $35,645.00
Cheques Written No.91 $ 1,256 92 5,475 93 2,590 94 3,613 95 3,033 96 1,895 97 8,862 98 3,033 99 8,982 100 6,794 Total April CashDisbursements $45,533
The following bank statement is available for April: (Note: Thebank deposits interest into the bank account at the end of everymonth.)
Bank Statement To:Gemma Tours April 30, 2017
Bank of Montreal Cheques/Charges Deposits/Credits Balance 15,500 #93 04/02 2,509 04/03 22,044 35,035 #92 04/07 5,475 04/07 14,865 44,425 #84 04/13 1,981 04/13 892 43,336 NSF 04/18 6,876 04/18 14,272 50,732 #95 04/23 3,033 04/23 994 48,693 #99 04/27 8,982 04/27 1,981 41,692 #96 04/30 1,895 04/30 2,641 42,438 #97 04/30 8,862 INT 46 33,622 #94 04/30 3,613 30,009 PMT 04/30 9,861 20,148 INT 04/30 35 20,113 SC 04/30 55 20,058
NSF = NotSufficient
Funds SC =Service
Charge PMT =Principal
Payment INT =Interest
In reviewing cheques returned by the bank, the bookkeeperdiscovered that cheque #93, for delivery expense, was recorded inthe Cash Disbursements Journal incorrectly as $2,590. The NSFcheque was that of customer Laura Clark, deposited in April.
Required:
a. Prepare a bank reconciliation at April 30.
GEMMA TOURS Bank Reconciliation April 30, 2017 Bank Statement Company's Books Bankstatement balance Bookbalance Add: Add: 0 0 0 Deduct: Deduct: Outstanding cheques: 0 0 Adjusted bank balance Adjusted book balance
b. Prepare the necessary journal entries tobring the General Ledger Cash account into agreement with theadjusted balance on the bank reconciliation.
Journal entry worksheet
Record interest earned.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
Journal entry worksheet
Record to account for error in Cheque #93.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
Journal entry worksheet
Record to reinstate customer account.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
Journal entry worksheet
Record April loan payment.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
Journal entry worksheet
Record April interest expense.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
Journal entry worksheet
Record April bank charges.
Note: Enter debits before credits.
Date General Journal Debit Credit Apr 30
The bank reconciliation prepared by Gemma Tours on March 31,2017, appeared as follows:
Gemma Tours | ||||
Bank Reconciliation | ||||
March 31, 2017 | ||||
Bank statementbalance | $15,500 | Book balance | $34,257 | |
Add: | ||||
Deposit of March 31 in transit | 22,044 | |||
$37,544 | ||||
Deduct: | ||||
Outstanding cheques: | ||||
#79 | $1,306 | |||
#84 | 1,981 | 3,287 | ||
Adjusted bankbalance | $34,257 | Adjusted bookbalance | $34,257 | |
The Cash account in the General Ledger appeared as follows on April30:
Cash | Acct. No.101 | ||||
Date | Explanation | PR | Debit | Credit | Balance |
2017 | |||||
March 31 | Balance | 34,257.00 | |||
April 30 | CR11 | 35,645.00 | 69,902.00 | ||
30 | CD14 | 45,533.00 | 24,369.00 | ||
A list of deposits made and cheques written during April, takenfrom the Cash Receipts Journal and Cash Disbursements Journal, isshown below:
Deposits Made | |
April 7 | $14,865.00 |
13 | 892.00 |
18 | 14,272.00 |
23 | 994.00 |
27 | 1,981.00 |
30 | 2,641.00 |
Total April CashReceipts | $35,645.00 |
Cheques Written | |
No.91 | $ 1,256 |
92 | 5,475 |
93 | 2,590 |
94 | 3,613 |
95 | 3,033 |
96 | 1,895 |
97 | 8,862 |
98 | 3,033 |
99 | 8,982 |
100 | 6,794 |
Total April CashDisbursements | $45,533 |
The following bank statement is available for April: (Note: Thebank deposits interest into the bank account at the end of everymonth.)
Bank Statement | |||||
To:Gemma Tours | April 30, 2017 Bank of Montreal | ||||
Cheques/Charges | Deposits/Credits | Balance | |||
15,500 | |||||
#93 | 04/02 | 2,509 | 04/03 | 22,044 | 35,035 |
#92 | 04/07 | 5,475 | 04/07 | 14,865 | 44,425 |
#84 | 04/13 | 1,981 | 04/13 | 892 | 43,336 |
NSF | 04/18 | 6,876 | 04/18 | 14,272 | 50,732 |
#95 | 04/23 | 3,033 | 04/23 | 994 | 48,693 |
#99 | 04/27 | 8,982 | 04/27 | 1,981 | 41,692 |
#96 | 04/30 | 1,895 | 04/30 | 2,641 | 42,438 |
#97 | 04/30 | 8,862 | INT | 46 | 33,622 |
#94 | 04/30 | 3,613 | 30,009 | ||
PMT | 04/30 | 9,861 | 20,148 | ||
INT | 04/30 | 35 | 20,113 | ||
SC | 04/30 | 55 | 20,058 |
NSF = NotSufficient Funds | SC =Service Charge | PMT =Principal Payment | INT =Interest | ||
In reviewing cheques returned by the bank, the bookkeeperdiscovered that cheque #93, for delivery expense, was recorded inthe Cash Disbursements Journal incorrectly as $2,590. The NSFcheque was that of customer Laura Clark, deposited in April.
Required:
a. Prepare a bank reconciliation at April 30.
|
b. Prepare the necessary journal entries tobring the General Ledger Cash account into agreement with theadjusted balance on the bank reconciliation.
Journal entry worksheet
Record interest earned.
Note: Enter debits before credits.
|
Journal entry worksheet
Record to account for error in Cheque #93.
Note: Enter debits before credits.
Journal entry worksheet Record to reinstate customer account. Note: Enter debits before credits.
|