P7-5B. Bank Reconciliation The bank reconciliation made by Adam Company, a sole proprietorship, on March...
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P7-5B. Bank Reconciliation The bank reconciliation made by Adam Company, a sole proprietorship, on March 31 showed a deposit in transit of $1,300 and two outstanding checks, No. 797 for $550 and No. 804 for $690. The reconciled cash balance on March 31 was $12,020. The following bank statement is available for April 30 : A list of deposits made and checks written during April is shown below: The Cash in Bank account balance on April 30 was $13,991. In reviewing checks returned by the bank, the accountant discovered that check No. 811, written for $541 for delivery expense, was recorded in the cash disbursements journal as $451. The NSF check for $500 was that of customer R. Koppa, deposited in April. Interest for April added to the account by the bank was $95. Required a. Prepare a bank reconciliation for Adam Company at April 30 . b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. P7-6B. Reporting Cash Janzen Company has the following items at year-end: Required Identify the amount of the above items that should be reported as cash and cash equivalents on Janzen Company's balance sheet
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