Exercise 7-24

Angela Lansbury Company 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 transit1,540

Deduct: Outstanding checks(2,000

)

Balance per books$6,540

Month of July Results

Per Bank

Per Books

Balance July 31$8,650$9,250July deposits5,0005,810July checks4,0003,100July note collected (not included in July deposits)1,000July bank service charge15July NSF check from a customer, returned by the bank (recorded by bank as a charge)335

Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.

ANGELA LANSBURY COMPANY

Bank Reconciliation

July 31

Deposits in transit

Outstanding checks

Bank service charge

Collection of note

NSF check

Correct cash balance, July 31

Balance per bank statement, July 31

$

Add

Less

:

Bank service charge

Balance per bank statement, July 31

Correct cash balance, July 31

Balance per books, July 31

Collection of note

Deposits in transit

Understated check for supplies

NSF check

Add

Less

:

Bank service charge

Balance per books, July 31

NSF check

Outstanding checks

Collection of note

Correct cash balance, July 31

Balance per bank statement, July 31

Understated check for supplies

Deposits in transit

Collection of note

Outstanding checks

Balance per bank statement, July 31

Bank service charge

NSF check

Correct cash balance, July 31

Balance per books, July 31

$

Outstanding checks

NSF check

Balance per books, July 31

Deposits in transit

Bank service charge

Collection of note

Correct cash balance, July 31

$

Less

Add

:

Collection of note

Outstanding checks

Balance per books, July 31

Balance per bank statement, July 31

Bank service charge

NSF check

Correct cash balance, July 31

Deposits in transit

Add

Less

:

Balance per bank statement, July 31

Correct cash balance, July 31

Balance per books, July 31

Collection of note

Deposits in transit

Outstanding checks

Bank service charge

NSF check

$

Correct cash balance, July 31

Balance per books, July 31

NSF check

Balance per bank statement, July 31

Deposits in transit

Bank service charge

Outstanding checks

Collection of note

NSF check

Correct cash balance, July 31

Collection of note

Balance per bank statement, July 31

Deposits in transit

Outstanding checks

Bank service charge

Balance per books, July 31

$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the general journal entry to correct the Cash account.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit