Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

Instructions
(a) Prepare a bank reconciliation going from balance per bank and balance per books to correct cash balance.
(b) Prepare the general journal entry or entries to correct the Cashaccount.

Transcribed Image Text:

June 30 Bank Reconciliation Balance per bank Add: Deposits in transit Deduct: Outstanding checks Balance per books $7,000 1,540 (2,000) $6,540 Month of July Results 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, returned by the bank Per Bank $8,650 5,000 4,000 1,000 15 335 Per Books $9,250 5,810 3,100 (recorded by bank as a charge)