The bank reconciliation prepared by Winfield Construction on June 30, 2020, 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?

Transcribed Image Text:

Winfield Construction Bank Reconcillation June 30, 2020 $ 8,700 Bank statement balance Book balance. $9,260 Add: Deposit of June 30 in transit. 1,300 $10,000 Deduct: Outstanding cheque #14 Adjusted bank balance. 740 Adjusted book balance.. $ 9,260 $9,260 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 30 June Balance July 4,672 9,260 13,932 31 CR3 31 2,909 11,023 CD6