E7.24 (LO6) (Bank Reconciliation and Adjusting Entries)

Kipling plc 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 4,500 5,810

July checks 4,000 3,100

July note collected (not included in July deposits) 1,500

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 the cash balance.

b. Prepare the general journal entry or entries to correct the Cash account.