Problem 7-5B Preparing a bank reconciliation and recording adjustments L06 CHECK FIGURE: a. Adjusted book balance = $13,929 The bank reconciliation prepared by Village-on-the-lake Condos on May 31, 2017, is shown below: Village-on-the-Lake Condos Bank Reconciliation May 31, 2017 $ 2,060 Book balance... $3.910 Bank statement balance Add: Deposit of May 31 in transit ......... 12,500 $14,560 Deduct: Outstanding cheques: #103. #120 Adjusted bank balance.......... $6,520 4.130 10.650 $ 3,910 Adjusted book balance ........ $3.910 The Cash account in the general ledger appeared as follows on June 30: Explanation PR Cash Debit Credit Acct. No. 101 Balance Date 2017 May 31 June 30 Balance CR21 CD16 38,680 3,910 42,590 10,729 31,861 A list of deposits made and cheques written during June, taken from the cash receipts journal and cash disbursements journal, is shown below: Deposits Made June 5. $ 590 1,120 5,690 4,510 7,830 12,600 6.340 Total June Cash Receipts ........... $38.680 Cheques Written No. 127 $ 2,100 128 450 129 680 130 4.750 131. 146 132 6,420 4,550 134 6.780 135. 820 136.. Total June Cash Disbursements... $31.861 133 115 CHAPTER 7 Internal Control and Cash The following bank statement is available: Bank Statement To: Village-on-the-Lake Condos June 30, 2017 Bank of Nova Scotia Cheques/Charges Deposits/Credits #133 06/02 #136 06/05 #129 06/10 #130 06/15 #103 06/20 #134 06/27 #128 06/30 SC 06/30 NSF = Not Sufficient Funds 4,550 115 680 9.750 6,520 6,780 450 400 SC - Service Charge 06/02 06/05 06/10 06/15 06/20 06/27 06/30 12,500 590 1,120 5,690 4,510 7.830 16,200 Balance 2,060 10,010 10,485 10.925 6,865 4,855 5,905 21,655 21,255 INT = Interest PMT - Principal Payment 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