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The bank reconciliation prepared by Gemma Tours on March 31, 2020, appeared as follows:

GEMMA TOURS
Bank Reconciliation
March 31, 2020
Bank statement balance				$	14,000		Book balance	$	30,942
Add:
Deposit of March 31 in transit					19,912
					33,912
Deduct:
Outstanding cheques:
#79	$	1,181
#84		1,789			2,970
Adjusted bank balance				$	30,942		Adjusted book balance	$	30,942

The Cash account in the General Ledger appeared as follows on April 30:

Cash							Acct. No. 101
Date		Explanation	PR	Debit		Credit	Balance
2020
March	31	Balance					30,942.00
April	30		CR11	32,206.00			63,148.00
	30		CD14			41,410.00	21,738.00

A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

Deposits Made
April	7		$	13,431.00
	13			805.00
	18			12,880.00
	23			896.00
	27			1,789.00
	30			2,405.00
Total April Cash Receipts			$	32,206.00

Cheques Written
No.	91		$	1,135
	92			4,947
	93			2,590
	94			3,265
	95			2,742
	96			1,713
	97			8,011
	98			2,742
	99			8,121
	100			6,144
Total April Cash Disbursements			$	41,410

The following bank statement is available for April: (Note: The bank deposits interest into the bank account at the end of every month.)

Bank Statement
To: Gemma Tours						April 30, 2020 Bank of Montreal
Cheques/Charges						Deposits/Credits			Balance
									14,000
#93	04/02		2,509			04/03	19,912		31,403
#92	04/07		4,947			04/07	13,431		39,887
#84	04/13		1,789			04/13	805		38,903
NSF	04/18		6,200			04/18	12,880		45,583
#95	04/23		2,742			04/23	896		43,737
#99	04/27		8,121			04/27	1,789		37,405
#96	04/30		1,713			04/30	2,405		38,097
#97	04/30		8,011			INT	43		30,129
#94	04/30		3,265						26,864
PMT	04/30		8,910						17,954
INT	04/30		33						17,921
SC	04/30		52						17,869
NSF = Not Sufficient Funds		SC = Service Charge				PMT = Principal Payment			INT = Interest

In reviewing cheques returned by the bank, the bookkeeper discovered that cheque #93, for delivery expense, was recorded in the Cash Disbursements Journal incorrectly as $2,590. The NSF cheque was that of customer Laura Clark, deposited in April. Required: a. Prepare a bank reconciliation at April 30.

b. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.

GEMMA TOURS Bank Reconciliation April 30, 2020 Bank Statement Company's Books Bank statement balance Book balance Add: Add: 0 0 0 Deduct: Deduct: Outstanding cheques: 0 0 Adjusted bank balance Adjusted book balance View transaction list :X 1 Record interest earned. 2 Record to account for error in Cheque #93. 3 Record to reinstate customer account. 4 Record April loan payment. 5 Record April interest expense. Credit 6 Record April bank charges. Note : = journal entry has been entered Record entry Clear entry View general journal

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