Bank Reconciliation (Partial) The cash account for Feldman Company contains the following information for April: Cash balance, 3/31 $14,685 Cash received during April 55,680 70,365 Cash disbursements during April: Cheque 7164 $33,500 Cheque 7165 11,250 Cheque 7166 18,750 Cheque 7167 900 64,400 Cash balance, 4/30 $5,965 The bank statement for April contains the following information: Bank balance, 3/31 $25,285 Add: Deposits during April 55,680 80,965 Less: Cheques paid during April: Cheque 7162 $8,900 Cheque 7163 1,700 Cheque 7164 33,500 Cheque 7165 11,250 55,350 Bank balance, 4/30 $25,615 Required: Assuming there were no deposits in transit at March 31 and that all outstanding cheques at March 31 cleared during April, do the following: 1. Identify the outstanding cheques at April 30. 2. Prepare the reconciliation of the bank and cash account balances at April 30. 3. Identify the outstanding cheques at March 31. 4. Prepare the reconciliation of the bank and cash account balances at March 31. 5. CONCEPTUAL CONNECTION: Why could you not perform the bank reconciliations without knowing that there were no deposits in transit on March 31 and that all outstanding cheques at March 31 cleared during April?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 7.3BE

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Bank Reconciliation (Partial)

The cash account for Feldman Company contains the following information for April:

Cash balance, 3/31		$14,685
Cash received during April		55,680
		70,365
Cash disbursements during April:
Cheque 7164	$33,500
Cheque 7165	11,250
Cheque 7166	18,750
Cheque 7167	900	64,400
Cash balance, 4/30		$5,965

The bank statement for April contains the following information:

Bank balance, 3/31		$25,285
Add: Deposits during April		55,680
		80,965
Less: Cheques paid during April:
Cheque 7162	$8,900
Cheque 7163	1,700
Cheque 7164	33,500
Cheque 7165	11,250	55,350
Bank balance, 4/30		$25,615

Required:

Assuming there were no deposits in transit at March 31 and that all outstanding cheques at March 31 cleared during April, do the following:

1. Identify the outstanding cheques at April 30.

2. Prepare the reconciliation of the bank and cash account balances at April 30.

3. Identify the outstanding cheques at March 31.

4. Prepare the reconciliation of the bank and cash account balances at March 31.

5. CONCEPTUAL CONNECTION: Why could you not perform the bank reconciliations without knowing that there were no deposits in transit on March 31 and that all outstanding cheques at March 31 cleared during April?

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