The bookkeeper at Hopkins Company has not reconciled the bankstatement with the
ID: 2457596 • Letter: T
Question
The bookkeeper at Hopkins Company has not reconciled the bankstatement with the Cash account, saying, “I don’t havetime.” You have been asked to prepare a reconciliation andreview the procedures with the bookkeeper.
The April 30, 2006, bank statement and the April ledger accountsfor cash showed the following (summarized):
A comparison of checks written before and during April with thechecks cleared through the bank showed outstanding checks at theend of April of $2,200. No deposits in transit were carried overfrom March, but a deposit was in transit at the end of April.
The bookkeeper at Hopkins 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, 2006, bank statement and the April ledger accounts for cash showed the following (summarized): 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 $2,200. No deposits in transit were carried over from March, but a deposit was in transit at the end of April. What was the balance in the cash account in the ledger on May1, 2006? What total amount of cash should be reported on the balance sheet at the end of April?Explanation / Answer
Hopkin'scompany BankReconciliation Apr30,2006 Balance perBank 18,530 Add Deposit in transit (42,000-36,000) 6,000 Less outstandingchecks (2,200) Adjusted Bank Balance, Apr30th 22,330 Cash BegBalance 23,250 Checks written 43,800 Deposits 42,000 NSFcheck 140 Interest collected 1,070 Bankfee 50 Endingbalance 22,330 1. Balance in the cash account on May 1, $ 22,330 2. $ 22,330
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