The bookkeeperat Hopkins Company has not reconciled the bank statement with the

Question

The bookkeeperat Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review procedures with the bookkeeper.

The April 30, 2018, bank statement and the April ledger accounts for cash showed the following (Summarized):

                                          Bank Statement

                                               Cash in Bank

                                              Cash on Hand

A company of cheques written before and during April whththe cheques cleared through the bank showed that cheques of $4,100 are still outstanding at April 30. No seposits in transit were carried over from March, but a deposit was in transit at April 30.

Required:

1. Prepare a detailed bank reconciliation at April30, 2018.

2. Prepare any required journal entries as a result of the reconciliation. Why are they necessary?

3. What were the balances in the cash accounts in the ledger on May 1, 2018?

4. What total amount of cash should be reported on the statement of financial position at April 30. 2018.

Please answer all the questions, espicially, question 3 and 4 because I put this question before but the professor who answered it did not answer all of them.

Cheques Deposits Balance Balance, April 1,2018 $31,000 Deposits during April $36,100 67,100 Notes Collected for company (including $70 interest) 1,180 68,280 Cheques cleared during April $44,500 23,780 NSF cheque-A. B. Wright 160 23,620 Bank service charges 70 23,550 Balance, April 30, 2018 23,550

Explanation / Answer

1) Hopkins Company Bank Reconciliation April 30, 2018 Company's Books Bank Statement Cash balance per books ($23500 + 41500 - 41000 -100) $23,900.00 Cash balance per bank statement $23,550.00 Additions: Additions: Interest Collected $1,180.00 Deposits in transit (41500 - 36100) $5,400.00 $25,080.00 $28,950.00 Deductions: Deductions: NSF—A. B. Wright $160.00 Outstanding checks -$4,100.00 Bank charges $70.00 -$230.00 Adjusted cash balance per books $24,850.00 Adjusted cash balance per bank $24,850.00 2) Accounts and Explanation Debit Credit Bank Charges $70.00 Cash $70.00 Accounts Receivable—A. B Wright 160 Cash 160 Cash $1,180.00 Interest Revenue $1,180.00 3) The balances in the cash accounts in the ledger on May 1, 2018 $24,850.00 4) Total amount of cash should be reported on the statement of financial position at April 30. 2018 Current Assets : Cash $24,850.00

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