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Pro 7-6B Preparing a bank reconciliation and recording adjustments LO6 CHE GURE: a. Adjusted book balance = $13,929 The bank reconciliation prepared by Village-on-the-Lake Condos on May 31, 2020, is shown below: Village-on-the-Lake Condos Bank Reconciliation May 31, 2020 $ 2,060 Book balance $3.910 Bank statement balance Add Deposit of May 31 in transit............... 12.500 $14,560 Deduct Outstanding cheques: 1103 +120 Adjusted bank balance... $6,520 4,130 10,650 $ 3,910 $3,910 Adjusted book balance 527 CHAPTER 7 Internal Control and Cash The Cash account in the general ledger appeared as follows on June 30: Acet. No. 101 Cash Debat Credit Balance PR Explanation 3.910 42.590 Balance 38.680 2020 May 31 June 30 30 CR21 CD16 31,861 10,729 A list of deposits made and cheques written during June, taken from the cash receipts journal and cu disbursements journal, is shown below: Cheques Written Deposits Made 5 590 1,120 5,690 4,510 10 $ 2.100 450 680 No. 127 128 129 130 15 20 9.750 196 131 132 30 6.420 7,830 12.600 6,340 $38,680 30 133 Tot June Cash Receipts 134 4.550 6,780 820 135 136 Total Jane Cash Disbursements 115 $31861 The following bank statement is available for June: Bank Statement Te Village on the lake Condos Chege Charges Deposits/Credits 0002 116 06.02 12.500 1130 06/15 06/10 06/15 June 30, 2020 Bank of Nova Scotia Balance 2,060 10,010 590 10.485 1.120 10.925 6.865 4,855 5.905 21,655 21,255 INT Interest 06/20 6.780 05/27 06/10 06 5.690 4,510 7.830 16,200 05/27 06/30 SC - Service PMT Principal Payment 528 CHAPTER 7 Internal Control and Cash In reviewing deposits recorded by the bank, the bookkeeper discovered that the deposit from customer Darla Smith dated June 30, recorded in the cash receipts journal incorrectly as $12,600, was recorded by the bank correctly as $16,200. Required a. Prepare a bank reconciliation at June 30. b. Prepare the necessary journal entries to bring the general ledger Cash account into agreement with the adjusted balance on the bank reconciliation ustments LO6