Question: Angela Lansbury firm deposits all receipts & makes all payments by check. The following data 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] Create a bank reconciliation going from balance per bank and balance per book to correct cash balance.
[B] Make the general journal entry or entries to correct the Cash account.