Reference no: EM132653153

The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account. 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 $32,500

Deposits during April                      $36,500                  69,000

Interest collected                           1,280                         70,280

Checks cleared during April               $45,500                     24,780

NSF check-A. B. Wright                       270                          24,510

Bank service charges                           4,440

Balance, April 30, Current Year              24,440

Cash (A)Apr. 1 Balance 24,300

Apr. Checks written 41,500

Apr. Deposits 41,700

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 $4,200 (including $2,520 written before and $1,680 written during April). No deposits in transit were carried over from March, but a deposit was in transit at the end of April.

Required:

Question 1. Prepare a detailed bank reconciliation for April.