Part A - Reconciliation At the end of April 2021, Showtime Theatre's accounting records show a cash balance of $4,800. The April bank statement reports a cash balance of $3,700. The following information is gathered from the bank statement and company records: Checks outstanding Deposits outstanding Interest earned $1,900 1,600 70 Customer's NSF check Service fee $1,300 200
Part A - Reconciliation At the end of April 2021, Showtime Theatre's accounting records show a cash balance of $4,800. The April bank statement reports a cash balance of $3,700. The following information is gathered from the bank statement and company records: Checks outstanding Deposits outstanding Interest earned $1,900 1,600 70 Customer's NSF check Service fee $1,300 200
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 20CE
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![Part A - Reconciliation
At the end of April 2021, Showtime Theatre's accounting records show a cash balance of $4,800.
The April bank statement reports a cash balance of $3,700. The following information is
gathered from the bank statement and company records:
Checks outstanding
Deposits outstanding
Interest earned
$1,900
1,600
70
Customer's NSF check
Service fee
$1,300
Required:
1) Prepare a bank reconciliation for the month of April 2021.
2) Prepare entries to update the balance of cash in the company's records.
200
In addition, Showtime discovered it correctly paid for advertising with a check for $220 but
incorrectly recorded the check in the company's records for $250. The bank correctly processed
the check for $220.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97bc0ea6-a641-45ad-8d06-2a494f72d98f%2Fdece79c0-f211-4e50-8672-4fea7cb45cd7%2F59pgcpv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Part A - Reconciliation
At the end of April 2021, Showtime Theatre's accounting records show a cash balance of $4,800.
The April bank statement reports a cash balance of $3,700. The following information is
gathered from the bank statement and company records:
Checks outstanding
Deposits outstanding
Interest earned
$1,900
1,600
70
Customer's NSF check
Service fee
$1,300
Required:
1) Prepare a bank reconciliation for the month of April 2021.
2) Prepare entries to update the balance of cash in the company's records.
200
In addition, Showtime discovered it correctly paid for advertising with a check for $220 but
incorrectly recorded the check in the company's records for $250. The bank correctly processed
the check for $220.
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