Bank Reconciliation and Adjusting Entries Kipling Company deposit all receipts and make all payments by check. The following information is available from the cash records.

(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 Cashaccount.

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June 30 Bank Reconciliation Balance per bank Add: Deposits in transit Deduct: Outstanding checks $7,000 1,540 (2,000) $6.540 Balance per books Month of July Results Per Books Per Bank $8,650 $9,250 Balance July 31 July deposits July checks July note collected (not included in July deposits) July bank service charge July NSF check from a customer, retumed by the bank (recorded by bank as a charge) 4,500 4,000 1,500 5,810 3,100 15 335