Question

The bookkeeperat Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review procedures with the bookkeeper.

The April 30, 2018, bank statement and the April ledger accounts for cash showed the following (Summarized):

                                          Bank Statement

	Cheques	Deposits	Balance
Balance, April 1,2018			$31,000
Deposits during April		$36,100	67,100
Notes Collected for company (including $70 interest)		1,180	68,280
Cheques cleared during April	$44,500		23,780
NSF cheque-A. B. Wright	160		23,620
Bank service charges	70		23,550
Balance, April 30, 2018			23,550

                                               Cash in Bank

Apr. 1 Balance   23,500	Apr.     Cheques written   41,000
Apr.     Deposits 41,500

                                              Cash on Hand

Apr. 30         Balance       100

A company of cheques written before and during April whththe cheques cleared through the bank showed that cheques of $4,100 are still outstanding at April 30. No seposits in transit were carried over from March, but a deposit was in transit at April 30.

Required:

1. Prepare a detailed bank reconciliation at April30, 2018.

2. Prepare any required journal entries as a result of the reconciliation. Why are they necessary?

3. What were the balances in the cash accounts in the ledger on May 1, 2018?

4. What total amount of cash should be reported on the statement of financial position at April 30. 2018.

Please answer all the questions, espicially, question 3 and 4 because I put this question before but the professor who answered it did not answer all of them.

Answer 1

1)
Hopkins Company
Bank Reconciliation
		April 30, 2018
Company's Books			Bank Statement
Cash balance per books ($23500 + 41500 - 41000 -100)		$23,900.00	Cash balance per bank statement	$23,550.00
Additions:			Additions:
Interest Collected		$1,180.00	Deposits in transit (41500 - 36100)	$5,400.00
		$25,080.00		$28,950.00
Deductions:			Deductions:
NSF—A. B. Wright	$160.00		Outstanding checks	-$4,100.00
Bank charges	$70.00	-$230.00
Adjusted cash balance per books		$24,850.00	Adjusted cash balance per bank	$24,850.00
2)
Accounts and Explanation	Debit	Credit
Bank Charges	$70.00
Cash		$70.00
Accounts Receivable—A. B Wright	160
Cash		160
Cash	$1,180.00
Interest Revenue		$1,180.00
3)
The balances in the cash accounts in the ledger on May 1, 2018	$24,850.00
4) Total amount of cash should be reported on the statement of financial position at April 30. 2018
Current Assets : Cash	$24,850.00