The bank reconciliation prepared by Westburn Apartments on May 31, 2011 is below

Westburn Apartments

Bank Reconciliation

May 31, 2011

Bank Statement Balance2,060Book Balance8,740AddDeposit of May 31 in transit9,60011,660DeductOutstanding cheques # 1031,880 # 1201,0402,920Adjusted Bank Balance8,740Adjusted Book Balance8,740

The Cash account in the General Ledger appeared as follows on June 30;

CashAcct. No. 101DateExplanationPRDebitCreditBalance2011May 31Balance8,740June 30CR2190,08098,820June 30CD1635,22063,600

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

Deposits MadeCheques WrittenJune53,400No.1273,400101,7801289,340152,2001291,900202,7001302,4002760,000131450305,8001322,3503014,2001333,000Total June Cash Receipts90,0801343,2801351,3001367,800Total June Cash Disbursements35,220

The following bank statement is available:

Bank StatementTo: Westburn ApartmentsJune 30, 2011Bank of Nova ScotiaCheques/ChargesDeposits/CreditsBalance2,060#13306/023,00006/029,6008,660#13606/057,80006/053,4004,260#12906/101,90006/101,7804,140#13006/152,40006/152,2003,940#10306/201,88006/202,7004,760#13406/273,28006/2760,00061,640#12806/309,34006/308,50060,640SC06/3040060,240NSF = Not Sufficient FundsSC = Service ChargePMT = Principal PaymentINT = Interest

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 5,800 was recorded by the bank correctly as 8,500.

Required

1. Prepare a bank reconciliation at June 30.
2. Prepare the necessary journal entries to bring the General Ledger Cash account into agreement with the adjusted balance on the bank reconciliation.