Problem: Angela Lansbury 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 $7000
Add: Deposit in transit 1540
Deduct: Outstanding Checks (2,000)
Balance per books $6,540
Month of July Results
Per Bank Per Books
Balance July 31 8650 9250
July deposits 5000 5810
July Checks 4000 3100
July note collected 1000 -
(not included in July deposits)
July bank service charge 15 -
July NSF check from a customer, 335 -
returned by the bank
(recorded by bank as a charge)
Instructions:
Q1. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
Q2. Prepare the general journal entry or entries to correct the Cash account.