The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below:

The Cash account in the general ledger appeared as follows on June 30:

A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal, is shown below:

The following bank statement is available for June:

In reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June 30, recorded in the cash receipts journal incorrectly as $12,600, was recorded by the bank correctly as $16,200.

Required

a. Prepare a bank reconciliation at June 30.

b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.

Transcribed Image Text:

Village-on-the-Lake Condos Bank Reconciliation May 31, 2020 Book balance.. Bank statement balance $3,910 $ 2,060 Add: Deposit of May 31 in transit. ......... 12,500 $14,560 Deduct: Outstanding cheques: #103 #120 $6,520 4,130 10,650 $ 3,910 Adjusted Adjusted bank balance.. ce $3,910 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 31 Balance 3,910 May June 38,680 30 CR21 42,590 30 31,861 10,729 CD16