Question

On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and Trust. Enclosed with the bank statement, which appears below, was a debit memorandum for $300 that covered an NSF check issued by Doris Fisher, a credit customer. The firm’s checkbook contained the following information about deposits made and checks issued during April. The balance of the Cash account and the checkbook on April 30, 2019, was $3,009.

DATE			TRANSACTIONS
April	1		Balance	$	6,999
	1		Check 1207		200
	3		Check 1208		490
	5		Deposit		540
	5		Check 1209		370
	10		Check 1210		3,900
	17		Check 1211		105
	19		Deposit		290
	22		Check 1212		9
	23		Deposit		290
	26		Check 1213		340
	28		Check 1214		21
	30		Check 1215		15
	30		Deposit		340

FIRST CITY BANK AND TRUST
HPF Vacations				1-877-123-9876
1718 Jade Lane
San Diego, CA 92111-4998
Account Number: 23-11070-08				April 1–30, 2019
Activity Summary:
Balance, April 1					$	6,999.00
Deposits and credits						1,120.00
Withdrawals and debits						(5,720.00	)
Balance, April 30					$	2,399.00
DATE		DESCRIPTION	DEPOSITS/CREDITS					WITHDRAWALS/DEBITS				BALANCE
4/1/19		Opening balance										$	6,999.00
4/6/19		Deposit		540.00									7,539.00
4/6/19		Check No. 1207							200.00				7,339.00
4/10/19		Check No. 1208							490.00				6,849.00
4/10/19		Check No. 1209							370.00				6,479.00
4/13/19		Check No. 1210							3,900.00				2,579.00
4/14/19		Service fee							6.00				2,573.00
4/20/19		Deposit		290.00									2,863.00
4/22/19		Check No. 1211							105.00				2,758.00
4/25/19		Deposit		290.00									3,048.00
4/26/19		Check No. 1212							9.00				3,039.00
4/29/19		Debit for NSF Check							300.00				2,739.00
4/29/19		Check No. 1213							340.00				2,399.00
		Totals		1,120.00					5,720.00

Required:

1. Prepare a bank reconciliation statement for the firm as of April 30, 2019.
2. Record general journal entries for any items on the bank reconciliation statement that must be journalized.

Analyze:
What checks remain outstanding after the bank statement has been reconciled?

Answer 1

1		HPF Vacations
		Bank Reconciliation
		April 30, 2019
		Bank:
		Balance, April 30, 2019		$2,399
		Add: Deposit in transit		$340
				$2,739
		Less: Outstanding checks
		Cheque No.
		#1214	$21
		#1215	$15	$36
		Adjusted bank balance, April 30, 2019		$2,703
		Books:
		Balance, April 30, 2019		$3,009
		Add:		$0
				$3,009
		Less: NSF cheque	$300
		Service fee	$6	$306
		Adjusted book balance, April 30, 2019		$2,703
		General Journal	Debit	Credit
	1	Accounts Receivable	$300
		Cash		$300
	2	Bank Service Fee Expense	$6
		Cash		$6
2	Cheque No.
	#1214	$21
	#1215	$15