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, had 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 collections. 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
1. Prepare a bank reconciliation as of April 30.
2. Journalize the necessary entries. The accounts have not beet closed.
3. If a balance sheet were prepared for South Bay Sports Co. on April 30, 2012, what amount should be reported as cash?