Reference no: EM131582385

Bank reconciliation and entries

The cash account for South Bay Sports Co. on April 1, 2012, indicated a balance of $35,025. During April, the total cash deposited was $83,150, and checks written totaled $90,000. The bank statement indicated a balance of $34,345 on April 30, 2012. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a. Checks outstanding totaled $7,700.

b. A deposit of $3,800, representing receipts of April 30, has been made too late to appear on the bank statement.

c. A check for $960 had been incorrectly charged by the bank as $690.

d. A check for $150 returned with the statement had been recorded by South Bay Sports Co. as $1,500. The check was for the payment of an obligation to Jones Co. on account.

e. The bank had collected for South Bay Sports Co. $2,600 on a note left for collection. The face of the note was $2,500.

f. Bank service charges for June amounted to $50.

g. A check for $1,900 from Valley Schools Academy was returned by the bank because of insufficient funds.

Instructions:

a. Complete bank reconciliation as of April 30.

2. Journalize the necessary entries. The accounts have not been closed.

3. If a balance sheet were prepared for South Bay Sports Co. on April 30, 2012, what amount should be reported as cash?