Exercise 7-24 (Part Level Submission)

Grouper 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$35,000

Add: Deposits in transit7,700

Deduct: Outstanding checks(10,000

)

Balance per books$32,700

Month of July Results

Per Bank

Per Books

Balance July 31$43,250$46,250July deposits25,00029,050July checks20,00015,500July note collected (not included in July deposits)5,000July bank service charge75July NSF check from a customer, returned by the bank (recorded by bank as a charge)1,675

(a)

Your answer is correct.

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

GROUPER LANSBURY COMPANY

Bank Reconciliation

July 31

Deposits in transit

Collection of note

NSF check

Balance per bank statement, July 31

Outstanding checks

Bank service charge

Correct cash balance, July 31

$

Add

Less

:

Understated check for supplies

Bank service charge

Balance per books, July 31

Collection of note

NSF check

Correct cash balance, July 31

Deposits in transit

Balance per bank statement, July 31

Less

Add

:

Correct cash balance, July 31

Balance per bank statement, July 31

Understated check for supplies

Bank service charge

NSF check

Outstanding checks

Balance per books, July 31

Collection of note

Balance per books, July 31

Bank service charge

Collection of note

NSF check

Correct cash balance, July 31

Balance per bank statement, July 31

Deposits in transit

Outstanding checks

$

Correct cash balance, July 31

Outstanding checks

Deposits in transit

Balance per books, July 31

Collection of note

Bank service charge

NSF check

$

Add

Less

:

NSF check

Balance per bank statement, July 31

Deposits in transit

Outstanding checks

Collection of note

Balance per books, July 31

Bank service charge

Correct cash balance, July 31

Add

Less

:

Bank service charge

Correct cash balance, July 31

NSF check

Balance per bank statement, July 31

Deposits in transit

Outstanding checks

Balance per books, July 31

Collection of note

$

Bank service charge

Balance per bank statement, July 31

Deposits in transit

Balance per books, July 31

NSF check

Correct cash balance, July 31

Outstanding checks

Collection of note

Outstanding checks

Deposits in transit

Balance per books, July 31

Collection of note

Bank service charge

Balance per bank statement, July 31

NSF check

Correct cash balance, July 31

$

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Attempts: 1 of 3 used

(b)

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

SHOW LIST OF ACCOUNTS