Reference no: EM132942501

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.

Problem a) Prepare the bank reconciliation for April 30.

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