The bank reconciliation prepared by Winfield Construction on June 30, 2023, appeared as follows: The Cash account

Question:

The bank reconciliation prepared by Winfield Construction on June 30, 2023, appeared as follows:


The Cash account in the general ledger appeared as follows on July 31:

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

The following bank statement is available for July:

In reviewing cheques returned by the bank, the bookkeeper noted that cheque #96 written by Winburn Construction in the amount of $391 was charged against Winfield’s account in error by the bank. The NSF cheque was regarding a customer account, Jim Anderson.


Required
1. Prepare a bank reconciliation at July 31.
2. Prepare the necessary journal entry to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation.


Analysis Component:
If the journal entries in Part 2 were not recorded, what financial statement elements (profit, assets, liabilities, and equity) would be over- or understated?

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 1

ISBN: 9781260881325

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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