Smith’s Cafe Ltd.’s bank statement for the month of April 2020 showed an ending bank balance of $11,400. The company’s general ledger Cash account showed a balance of $3,295 at April 30. Other information regarding its bank transactions for April include: Cheques written in March but still outstanding, $2,800.Cheques written in April but still outstanding, $6,000.Electronic collections on account totalled $6,150, and have not yet been recorded by the company.A customer’s cheque for $700 was returned by the bank as NSF.Cheque #210 for $594 was correctly issued and paid by bank, but incorrectly entered in the general journal as a payment on account for $549.Deposits of April 30 not yet recorded by bank, $6,100. Instructions:Prepare a bank reconciliation for Smith’s Café Ltd. at April 30, 2020.Prepare any adjusting entries necessary as a result of the bank reconciliation (no explanations necessary).

A bank reconciliation is a statement where the balance of the bank account of the entity is matched…

Answered: Smith’s Cafe Ltd.’s bank statement for…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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Smith’s Cafe Ltd.’s bank statement for the month of April 2020 showed an ending bank balance of $11,400. The company’s general ledger Cash account showed a balance of $3,295 at April 30. Other information regarding its bank transactions for April include:

Cheques written in March but still outstanding, $2,800.
Cheques written in April but still outstanding, $6,000.
Electronic collections on account totalled $6,150, and have not yet been recorded by the company.
A customer’s cheque for $700 was returned by the bank as NSF.
Cheque #210 for $594 was correctly issued and paid by bank, but incorrectly entered in the general journal as a payment on account for $549.
Deposits of April 30 not yet recorded by bank, $6,100.

Instructions:

Prepare a bank reconciliation for Smith’s Café Ltd. at April 30, 2020.
Prepare any adjusting entries necessary as a result of the bank reconciliation (no explanations necessary).

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