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