Baker Cycle Company\'s bank statement for the month of April showed a balance pe

Question

Baker Cycle Company's bank statement for the month of April showed a balance per bank of $6,000. The company's Cash account in the general ledger had a balance of $4,059 at September 30. Other information is as follows:(1) Cash receipts for September 30 recorded on the company's books were $4,200 but this amount does not appear on the bank statement.(2) The bank statement shows a debit memorandum for $40 for check printing charges.(3) Check No. 119 payable to Mann Company was recorded in the cash payments journal and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Mann Company and that the payment to them should have been for $284.(4) The total amount of checks still outstanding at September 30 amounted to $5,000.(5) Check No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.(6) The bank returned an NSF check from a customer for $360.(7) The bank included a credit memorandum for $1,460 which represents collection of a customer's note by the bank for the company; principal amount of the note was $1,400 and interest was $60. Interest has not been accrued.Prepare a bank reconciliation for Baker Cycle Company at April 30.

Explanation / Answer

ANSWER:

By using given information we have to prepare the bank reconciliation for Baker cycle company at April 30,

Bank's cash balance ($) Company's cash balance ($) ($) Per Bank statement 6000 Per General Ledger 4059 Add: Add: Deposite in Transit 4200 Error in Record check no:138 ($490-$409)= 81 Collection of Note and Interest 1460 (81+1460)=1541 Totlal (6000+4200)=10200 (4059+1541)=5600 Less: Less: Out standing checks 5000 Bank charges - check printing charges 40 NSF check 360 (360+40)=400 Bank balance after reconciliation 5200 Company balance per reconiliation (5600-400)=5200

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