P6-5 (Algo) Preparing a Bank Reconciliation and Related Journal Entries LO6-4 Skip to question [The following information applies to the questions displayed below.] The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): BANK STATEMENT Checks Deposits Balance Balance, April 1, Current Year $32,900 Deposits during April $36,800 69,700 Interest collected 1,220 70,920 Checks cleared during April $45,300 25,620 NSF check-A. B. Wright 180 25,440 Bank service charges 240 25,200 Balance, April 30, Current Year 25,200 Cash (A) Debit Credit April 1 Balance 24,200 April Checks written 43,500 April Deposits 43,400 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,900 (including $5,100 written before and $1,800 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 24RQSC

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P6-5 (Algo) Preparing a Bank Reconciliation and Related Journal Entries LO6-4

Skip to question

[The following information applies to the questions displayed below.]

The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures with the bookkeeper.

The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized):

BANK STATEMENT
	Checks	Deposits	Balance
Balance, April 1, Current Year			$32,900
Deposits during April		$36,800	69,700
Interest collected		1,220	70,920
Checks cleared during April	$45,300		25,620
NSF check-A. B. Wright	180		25,440
Bank service charges	240		25,200
Balance, April 30, Current Year			25,200

Cash (A)
Debit	Credit
April 1 Balance	24,200	April Checks written	43,500
April Deposits	43,400

A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,900 (including $5,100 written before and $1,800 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

P6-5 Part 4
4. What total amount of cash should be reported on the balance sheet at the end of April?
Total amount of cash

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