Nizzero Corporation Is a Newly Created Company and Noted the Following

question 21

Essay

Nizzero Corporation is a newly created company and noted the following cash related transaction for the first month ended April 2020:
1. According to the bank statement received for the month of April 2020, the balance in Nizzero's bank account on April 30 was $11,356.69.
2. The balance in the company's Cash account in the general ledger on April 30, 2020 was $13,211.76.
3. The last deposit of the month, for $867.91, was made as a night deposit on April 30.
4. One of Nizzero's customers paid its account by making an EFT from its bank into Nizzero's bank account in the amount of $616.09.
5. The bank subtracted a service charge of $42.00 from the company's bank account for April.
6. Cheque number 001 for $603.44, cheque number 009 for $531.00, and cheque number 010 for $78.49 were still outstanding at the end of April.
7. The bank statement showed that $750.00 was deducted from Nizzero's account by the bank as payment of loan principal.
8. The bank returned a cheque from one of Nizzero's customers marked NSF for $206.80 that a customer used to pay off their account.
9. The bank statement showed that cheque number 004 (which Nizzero had issued to pay for utilities expense) was recorded by the bank as $784.65, while the company incorrectly recorded this cheque as $874.65.
10. The bank deducted a cheque written by Nizarri Company (a different company) from Nizzero Company's account. The amount of the cheque was $1,907.38.
Instructions
a) Prepare the bank reconciliation for April 30, 2020.
b) Prepare all necessary journal entries to balance the cash ledger.

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Definitions:

Supply Chain Management

The actions the firm takes to coordinate the various flows within a supply chain.

Materials Management

The inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process.

Push Strategy

A supply chain strategy in which a company builds goods based on a sales forecast, puts those goods into storage, and waits for a customer to order the product.

Responsive Supply Chain

A supply chain structured to quickly respond to market changes and customer demands.