Bank Reconciliation}

Shortly after July 31, Towanda Corporation received a bank statement containing the following information:

July cash transactions and balances on Towanda's records are shown in the following T-account:

\section*{Required:}
1. Prepare a bank reconciliation for July.
2. Prepare the adjusting journal entries made by Towanda Corporation as a result of this reconciliation process.
3. What amount is reported as cash on the statement of financial position at July 31?
\section*{Problem

Transcribed Image Text:

Date Cheques Deposits Balance 6/30 Beg. balance $ 5.550 7/1 $ 300 5,850 7/2 $ 270 $ 150 $ 330 4,500 9.600 7/3 25 7,025 2,550 715 150 450 1,400 10,000 10,550 7/9 1,500 25 325 8.700 7/12 500 100 8,100 7/15 1,600 2,700 3,500 7,300 7/19 75 425 6,800 7/24 650 550 5,600 7/29 525* 5,075 7/31 25** 5,050