Reference no: EM133046197

Question - On April 30, a company's bank statement had an ending balance for cash of $45,612. The cash balance on the same date, in the accounting records, was $45,315.

1. During April, a customer's cheque for $1,210 was deposited in the bank in settlement of a receivable. The customer's cheque did not clear the bank due to nonsufficient funds. The bank deducted $26 for the NSF fee from the bank account.

2. Two cash deposits were missing from the bank statement, $753 on April 29 and $2,814 on April 30.

3. A customer was mailed a $1,231 cheque to the company to pay for an outstanding invoice. The cheque amount was correct and was correctly recorded in the bank statement. According to the accounting records, $1,321 received from the customer.

4. A company cheque for $954, was mailed during March to a supplier but did not cleared the bank account by the end of April. Company cheques, for $560 and $2,146 issued during the current month to suppliers, were still outstanding at month end.

5. The bank deducted $49 for bank service fees from the bank account. The company's accountants learned of this transaction from the bank statement.

6. One entry in the bank statement was the $1,579 received from a customer via electric funds transfer. The customer paid an outstanding invoice.

Required -

a) Prepare the bank reconciliation for April 30.

b) Prepare the necessary journal entries to adjust the company's records based on the bank reconciliation.