Question

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

BANK STATEMENT
	Checks		Deposits	Other		Balance
Balance, April 1						$6,000
April 5	#101	$ 700				5,300
April 9			$2,500			7,800
April 12	#102	200				7,600
April 19	#103	500				7,100
April 22	#104	1,000				6,100
April 27				EFT payment	$200	5,900
April 29				NSF check	100	5,800
April 30				Service charge	25	5,775

Cash (A)
April 1	Balance	6,000
April 8		2,500	700	April 2	#101
April 28		500	200	April 10	#102
			500	April 15	#103
			1,100	April 20	#104
			300	April 29	#105
April 30	Balance	6,200

No outstanding checks and no deposits in transit were noted in March. However, there are deposits in transit and checks outstanding at the end of April. The EFT involved an automatic monthly payment to one of KMaxx’s creditors. Check #104 was written for $1,100. The NSF check had been received from a customer.

Prepare a bank reconciliation for April. TIP: 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.

Answer 1