Blossom Food Store used the following information in recording its bank reconciliation for the month of April.Balance per books April 30 $ 805Balance per bank statement April 30 $ 11,400 (1) Checks written in April but still outstanding $ 6,000. (2) Checks written in March but still outstanding $ 2,500. (3) Deposits of April 30 not yet recorded by bank $ 4,000. (4) NSF check of customer returned by bank $ 510. (5) Check No. 210 for $ 583 was correctly issued and paid by the bank but incorrectly entered in the cash payments journal as payment on account for $ 538. (6) Bank service charge for April was $ 40. (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $ 613 when Check No. 318 was correctly prepared for $ 163. The check cleared the bank in April. (8) The bank collected a note receivable for the company of $ 6,000 plus $ 240 interest revenue. Prepare a bank reconciliation at April 30 Prepare a bank reconciliation at April 30.BLOSSOM FOOD STOREBank Reconciliation%242$%2$%24

Solution: Bank reconciliation statement of Blossom food store is as under:

Answered: lossom Food Store used the following…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 22E

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Blossom Food Store used the following information in recording its bank reconciliation for the month of April.

Balance per books April 30		$ 805
Balance per bank statement April 30		$ 11,400

(1)		Checks written in April but still outstanding $ 6,000.
(2)		Checks written in March but still outstanding $ 2,500.
(3)		Deposits of April 30 not yet recorded by bank $ 4,000.
(4)		NSF check of customer returned by bank $ 510.
(5)		Check No. 210 for $ 583 was correctly issued and paid by the bank but incorrectly entered in the cash payments journal as payment on account for $ 538.
(6)		Bank service charge for April was $ 40.
(7)		A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $ 613 when Check No. 318 was correctly prepared for $ 163. The check cleared the bank in April.
(8)		The bank collected a note receivable for the company of $ 6,000 plus $ 240 interest revenue.

Prepare a bank reconciliation at April 30

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