WATERWAY LU. Bank Reconciliation June 30, 2020 23240 Balance per bank Add : Deposits in transit Less : Outstanding checks 18984 y Correct cash balance y Balance per books Add: Note collection Error in recording deposit 6921.6 Less: LILIK Account Titles and Explanation Debit Credit (To record increases to cash) (To record decreases to cash) Problem 7-13 The cash account of Waterway Co. showed a ledger balance of $21,899.96 on June 30, 2020. The bank statement as of that date showed a balance of $23,240. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. 3. 4. 5. 6. There were bank service charges for June of $140. A bank memo stated that Bao Dai's note for $6,720 and interest of $201.60 had been collected on June 29, and the bank had made a charge of $30.80 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) Receipts for June 30 for $18,984 were not deposited until July 2. Checks outstanding on June 30 totaled $11,961.88. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,417.92 on June 29. A customer's check for $504 (as payment on the customer's Accounts Receivable) had been entered as $336 in the cash receipts journal by Waterway on June 15. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $325.92 had been entered as $3,259.20. Both checks had been issued to pay for purchases and were payments on Waterway's Accounts Payable. 7