(Bank Reconciliation and Adjusting Entries) Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
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June 30 Bank Reconciliation |
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Balance per bank |
$7,000 |
|
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Add: Deposits in transit |
1,540 |
|
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Deduct: Outstanding checks |
2,000 |
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|
Balance per books |
$6,540 |
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|
Month of July Results |
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|
Per Bank |
Per Books |
|
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Balance July 31 |
$8,650 |
$9,250 |
|
July deposits |
4,500 |
5,810 |
|
July checks |
4,000 |
3,100 |
|
July note collected (not included in July deposits) |
1,500 |
— |
|
July bank service charge |
15 |
— |
|
July NSF check from a customer, returned by the bank |
335 |
— |
Instructions
(a) Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
(b) Prepare the general journal entry or entries to correct the Cash account.