Problem - Bank Reconciliation and Adjusting Entries) Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
June 30 Bank Reconciliation
Balance per bank $7,000
Add: Deposits in transit 1,540
Deduct: Outstanding checks (2,000)
Balance per books $6,540
Month of July Results Per Bank Per Books
Balance July 31 $8,650 $9,250
July deposits 4,500 5,810
July checks 4,000 3,100
July note collected (not included in July deposits) 1,500
July bank service charge 15
July NSF check from a customer, returned by the bank 335 (recorded by bank as a charge)
Instructions - Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.