Item$7$

$8$

points

Item $7$

The bank reconciliation prepared by Winfield Construction on June $30,2023,$ appeared as follows:

Winfield Construction

Bank Reconciliation

June $30,2023$

Bank statement balance $ $9,600$ Book balance $ $10,250$

Add:

Deposit of June $30$ in transit $1,480$

$ $11,080$

Deduct:

Outstanding cheque #$14830$

Adjusted bank balance $ $10,250$ Adjusted book balance $ $10,250$

The Cash account in the General Ledger appeared as follows on July $31$:

Cash Acct. No$.101$

Date Explanation PR Debit Credit Balance

$2023$

June $30$ Balance $10,250$

July $31$ CR$34,96915,219$

$31$ CD$63,08012,139$

A list of deposits made and cheques written during July, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below:

Deposits Made

July $8$ $ $1,280$

$111,640$

$241,420$

$31629$

Total July Cash Receipts $ $4,969$

Cheques Written

No$.52$ $ $1,762$

$53948$

$54370$

Total July Cash Disbursements $ $3,080$

The following bank statement is available for July:

Bank Statement

To: Winfield Construction July $31,2023$

Bank of Montreal

Cheques$/$Charges Deposits$/$Credits Balance

$9,600$

NSF $07/0245807/021,48010,622$

#$5207/081,76207/081,28010,140$

#$9607/1141807/111,64011,362$

$07/241,42012,782$

#$5407/3137007/3112,412$

NSF $=$ Not Sufficient

Funds SC $=$ Service

Charge PMT $=$ Principal

Payment INT $=$ Interest

In reviewing cheques returned by the bank, the bookkeeper noted that cheque #$96$ written by Winburn Construction in the amount of $$418$ was charged against Winfield$$s account in error by the bank. The NSF cheque was regarding a customer account, Jim Anderson.

Required:

$1.$ Prepare a bank reconciliation at July $31.$

$2.$ Prepare the necessary journal entry to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.