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 $ 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 5,000 5,810 July checks 4,000 3,100 July note collected (not included in July deposits) 1,000 — July bank service charge 15 — July NSF check from a customer, returned by the bank (recorded by bank as a charge) 335 — 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.
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 $ 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 5,000 5,810 July checks 4,000 3,100 July note collected (not included in July deposits) 1,000 — July bank service charge 15 — July NSF check from a customer, returned by the bank (recorded by bank as a charge) 335 — 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.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1PB
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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 | $ 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 | 5,000 | 5,810 | ||
| July checks | 4,000 | 3,100 | ||
| July note collected (not included in July deposits) | 1,000 | — | ||
| July bank service charge | 15 | — | ||
| July NSF check from a customer, returned by the bank (recorded by bank as a charge) |
335 | — |
Instructions
a. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
b. Prepare the general
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